Advertising Standards Authority guidance on advertising in-game purchases

UK (AND OTHERS) – ADVERTISING AND MARKETING 

Following a public consultation in October 2020, the ASA has published formal guidance on the advertising of in-game purchases. The guidance aims to prevent harm or detriment to consumers caused by the way in-game purchases are marketed and this will be reviewed a year following its implementation.

Key date(s)

• 1 September 2010 – The Advertising Standards Authority (“ASA”) releases the twelfth edition of the CAP Code which extends its scope to in-game advertisements and “advergames”.
• 5 November 2020 – ASA publishes consultation on proposals to introduce guidance on advertising in-game purchases (the “Consultation”).
• 28 January 2021 – The Consultation closes.
• 20 September 2021 – ASA introduces new formal guidance on in-game purchases together with a statement explaining how the CAP and BCAP Codes apply to the marketing of in-games purchases in apps and video games (the “Guidance”).
• September / October 2022 – ASA plans to conduct a review of the Guidance.

Status

• In November 2020, the ASA published the Consultation in response to concerns from various groups including members of the public, government select committees, the press, and research organisations.
• Following the evaluation of the responses to the Consultation, the ASA published the Guidance on 20 September 2021. To prevent any unintended consequences arising as a result of the Guidance, the ASA has announced that it is subject to review after 12 months.
• Further, the ASA has stated that any complaints based on the Guidance in relation to existing in-game content or ads will be dealt with on an informal basis for a window of six months for in-game content (and three months for all other ads within scope). After this, the ASA will revert to its standard enforcement procedure.

 What it hopes to achieve 

• The Guidance aims to prevent harm or consumer detriment caused by the way in-game purchases are marketed.
• Although the CAP and BCAP Codes already prohibit harmful and misleading advertising generally, the ASA, Committee of Advertising Practice and Broadcast Committee of Advertising Practice (the “Committees”) noted that formal guidance rather than new rules would be more effective for explaining to advertisers what responsible and truthful marketing looks like and how the existing CAP and BCAP Codes apply to this specific issue.
• In particular, the Guidance addresses three key concerns identified in the Consultation, namely:
  • providing clarity of information at the point of purchase;
  • ensuring responsibility of advertising messages; and
  • promoting truthfulness in advertising of games containing purchasing.

Who does it impact? 

• Advertisers and marketers, game publishers and platforms (e.g. Steam, Google Play, or Origin) incorporating in-game purchases will be predominantly affected by the Guidance.
• The scope of the Guidance is broad and while it focuses on in-game advertising and associated online or in-game “storefronts” through which digital items may be purchased, the Guidance also applies to external advertisements of in-game purchases or games themselves (if they include in-game purchases).

Key points 

1. Clear pricing information of in-game purchases

• • To ensure that statements of price for in-game items fulfil the “material information” requirement in CAP Rule 3.3 and BCAP Rule 3.2, the Guidance requires marketers to avoid making misleading offers on “bundles” of virtual currency, disclose any “odd-pricing” (i.e. where pricing of currency bundles mismatch those of items), and signpost how much virtual currency the player holds on in-game storefronts.

2. Restrictions on the presentation of in-game purchases

• • As in-game purchases often occur in contexts where players may be easily misled (e.g. immersive gameplay which creates a sense of urgency), the Guidance provides that marketers intending to use certain advertising techniques within games (e.g. a short countdown timer) will need to justify them in relation to the context of the game.
  • Further, the Guidance discourages messaging relating to random-item purchasing (or “loot boxes”) which alludes to gambling activities.

3. Advertising games that feature in-game purchasing

• • In relation to advertisements of the games themselves, the Guidance requires marketers to clearly disclose where in-game purchasing (and random-item purchasing) is included in such games. Such disclosure must be easily accessible to players (e.g. by use of PEGI labelling).
  • Additionally, the Guidance asks marketers to refrain from falsely implying in advertisements that items requiring further purchase are included in the basic game.

4. Distinguishing inducements to purchase and editorial content

• • The Guidance does not apply to in-game purchases (or “storefronts”) which involve virtual currency which is “earned” within the game (even where the player has the option to “top up” with real money).
  • The ASA noted that this type of virtual currency would not be considered a “direct proxy” for real money (as opposed to virtual currency which may only be bought with real money) and therefore would amount to editorial content, rather than an inducement to purchase under the CAP and BCAP Codes. 

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