Anced files lawsuit to ban 'loot boxes' in video games in Brazil.

Highlight I 26.02.21

By: Elaine Silva

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The association claims that companies use the practice of "loot boxes," which are packages of items, such as character outfits, that promise surprises.

ANCED – the National Association of Centers for the Defense of the Rights of Children and Adolescents – filed a lawsuit this Wednesday (24) against the largest electronic game manufacturers in the world that operate in Brazil. Large corporations in the gaming world, as a way to maximize profits, have implemented a system called “loot boxes” in their games, which in Portuguese is also called surprise box or reward box.

Legal action will be brought against the companies Activision Blizzard Brasil Promocoes Ltda. (Activision); Electronic Art Games (EA Games); Garena Agenciamento de Negocios Ltda. (Garena Brasil); Nintendo Brasil; Riot Games Servicos Ltda, (Riot); Ubisoft Entertainment Ltda. (Ubisoft); Konami Holdings Corporation (Konami); Trueline Valve Corporation (Valve Corporation) and Tencent Holdings Ltda.

Furthermore, legal action has been filed against the companies that host the games on their platforms: Apple Computer Brasil Ltda; Microsoft do Brasil Importação; Google Brasil Internet Ltda. and Sony Interactive Entertainment do Brasil. In total, there are seven lawsuits, filed in the Children and Youth Court of the Federal District, seeking a total of 19 billion reais in compensation for collective and individual moral damages.

About the legal process

The term "loot box" is generally used to define mechanisms that give users access to items and advantages through participation in raffles, which are only accessible to those who use in-game currency obtained with real money.

A loot box is a sealed box that can only be opened occasionally and gives you rewards without any specific criteria. This practice is very common in gambling, especially in casinos, where you spin a roulette wheel to try and win the top prize.

Companies that operate in the gaming industry utilize various audiovisual resources. For example, if a player wins a rare item, the screen lights up with an animation and a special sound is emitted. This induces a feeling of reward in the player upon obtaining the item, which is even more serious for children and adolescents, as they are still developing, often leading to addiction or the development of personality disorders.

In games like FIFA, the famous soccer game, idols such as Neymar, Messi, Cristiano Ronaldo, and others can only be obtained by opening these boxes. Children and teenagers have their idols, and to be able to play with the character they represent, it's necessary to open several reward boxes, and they may never actually obtain the character.

According to Brazilian law, this practice constitutes a form of gambling and is prohibited by the Law of Criminal Offenses and the Statute of Children and Adolescents. In some countries, such as Belgium and the Netherlands, the loot box system has already been banned. Brazil needs to take a stand against this abusive practice.

It is estimated that by 2022 the gaming industry will have a revenue of 160 billion dollars, according to the specialized website Gamesindustry.

The action is sponsored by the law firm Márlon Reis, Estorilio & Leda Advogados Associados. ( BNLData )

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