Abstract as per original application
(English/Chinese): |
Playing video games is now a highly popular activity worldwide and in Hong Kong (HK) specifically: 94% of secondary school students play at least weekly. Video games may cause harm to young people: 15.6% of students experienced ‘video game addiction.’ Many video games sell gambling-like ‘loot boxes.’ Players can buy these virtual items with real-world money to get random rewards allowing them to look cooler and fight more powerfully. Players obtain desirable rewards very rarely (less than 1% chance) and so must spend large sums of money to guarantee obtaining what they want. These products are psychologically similar to gambling but are not regulated as such by governments, meaning young people who are not permitted to participate in traditional gambling are currently allowed to purchase loot boxes. More than 50% of HK video game players likely buy loot boxes. Some reported extreme spending of over HK$100,000 monthly. Besides financial harms, these products may exacerbate video game addiction and encourage children to gamble. Other countries have regulated loot boxes, including bans and minimum age requirements to better protect players. However, these products have not been regulated in HK. This project provides crucial, but presently lacking, local evidence on loot box availability, product characteristics, and regulation. Firstly, relevant HK laws will be identified. Consumer protection and gambling laws will be reviewed to identify how they apply and what obligations they place on companies. For example, the Trade Descriptions Ordinance requires that sellers must not hide important information, which when applied to the loot box context means that companies must tell players the probabilities for getting specific random rewards. Secondly, we will examine the 100 most popular games in HK through gameplay to identify how many of them sell loot boxes and how, thus providing evidence on how widely available these products are. Thirdly, we will assess whether the loot boxes identified comply with applicable HK law. For example, are players given information about their probabilities of winning rare rewards as required? We will also assess video game advertising materials published on HK social media as to whether they comply with consumer law. Our findings will be shared with regulators to encourage stricter enforcement against companies that do not follow rules. We will also create a public website that shares information about how loot boxes are regulated in different regions globally to help companies understand their regulatory obligations.
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