The Advertising Code Board of Appeal in the Netherlands has found that MY.GAMES, a developer of Rush Royale: Tower Defense TD game, breached multiple provisions of the Dutch Advertising Code and the Code for Advertising Directed at Children and Young People (KJC). The case involved a game that allows players to purchase various in-game items, such as loot boxes, but does not offer disclosures or safeguards appropriate for a young audience. The case additionally raised concerns about the lack of pricing transparency and the use of advertising tactics aimed at children.
Loot boxes must be clearly disclosed in App Store listings
In a decision dated 15 April 2025, the Board found that MY.GAMES failed to mention the existence of “loot boxes” in the Apple App Store listing for its game, as well as to include information about the probability of receiving random items from such loot boxes. Both the information about the option of purchasing and the likelihood of winning the random items is “essential information”. Not including that information violates Articles 7 and 8 of the Dutch Advertising Code and constitutes an act of misleading advertising (a form of unfair advertising).
Loot boxes have been described as in-game items that provide players with a randomised reward of uncertain value. Those rewards may be virtual tools, outfits, and weapons to be used in the game, or characters with particular skills. When a player pays for a loot box, he or she receives random in-game content of uncertain value.
Referring to Guidance on the interpretation and application of Directive 2005/29/EC on unfair business-to-consumer commercial practices (2021), the Board emphasized that the players must be clearly informed, before downloading a game, about any paid random content like loot boxes as well as about the probability of receiving the random item from a loot box. This is particularly so because the game is aimed at children. Consumers must have the information about the presence of loot boxes to make an informed decision about whether to download the game: they might refrain from downloading the (free) game, in order to avoid being tempted subsequently to make transactions based on this element of chance. Likewise, information about the probability of winning a random item allows the person to decide whether to purchase a loot box or not.
Leaving out this information can lead consumers to unwanted transactions that they would not have made if they had the essential information about the loot boxes on disposal.
In-game purchases must be clearly displayed in euros
MY.GAMES disclosed to players the euro price of the virtual currency (“Crystal”) to be used to purchase loot boxes (“Chests”), but it did not disclose the euro price of the loot boxes themselves. The Board concluded that, with that, MY.GAMES failed to inform the consumer clearly and unambiguously about the price of the loot boxes. This amounted to misleading and therefore unfair advertising, in violation of Article 7 of the Dutch Advertising Code.
Based on the EC Guidance on the interpretation and application of Directive 2005/29/EC, the Board determined that the price of in-game items must be clearly and prominently displayed in real currency. This is particularly important when the game is aimed at children, who cannot be expected to accurately estimate the real-world value of the in-game item by making a conversion based on the price previously paid for the virtual currency.
Games must not mislead users into believing paid items are free
During the game, players encounter a banner containing the message “collect it”, which appears without any additional context or explanation. By clicking on the banner, the consumer is redirected to a sales page. In other words, the banner is intended to encourage the player to buy items. The Board found this practice to be misleading.
The phrase “collect it” is vague and does not make it clear that the action of clicking will lead to a commercial offer. This is especially problematic in games aimed at children, who are more vulnerable to unclear advertising messages. Children may interpret the message to refer to an in-game activity rather than to a sales page.
Because the banner blends into the gameplay and fails to disclose its advertising intent, it violates Article 5(5) (first bullet point) of the KJC. This provision requires that all in-game advertising be clearly recognizable as such and be easily distinguishable from the game content itself.
Games must disclose the presence of advertising and identify the advertisers
The Board identified an additional way in which MY.GAMES violated Article 5(5) (first bullet point) of the KJC. The company did not provide information to the players that the game contained advertising.
According to the Board, in-game advertising must be clearly recognizable and must be distinguishable from gameplay through visual or auditory means that match children’s level of understanding. The goal is to ensure that children are not misled into thinking that advertisements are part of the game. The Board also clarified that this requirement extends to the listing of the game in the Apple App Store.
Before downloading, users must be clearly informed that the game contains advertising. Because this information was missing both in the store listing and during gameplay, the game did not meet the transparency requirements under Article 5(5) KJC.
Games must not encourage children to create advertising content
The game Rush Royale includes a feature that allows players to invite others to join the game directly from within the app. While such features are common in games and often aim to enhance the overall user experience, the Board found that this invitation function gives rise to compliance issues. Specifically, it offers rewards to players when their invitees join the game, which actively encourages users to recruit new players for the benefit of MY.GAMES. The Board determined that this practice falls under the scope of Article 5(6) of the KJC, which prohibits an advertiser from directly encouraging children to make advertising on behalf of the advertiser.
Conclusion
By failing to disclose the presence and pricing of loot boxes, using vague promotional language like “collect it”, and integrating advertising in ways that are not clearly distinguishable from gameplay, MY.GAMES breached several provisions of both the Dutch Advertising Code and the Children and Youth Advertising Code. The use of virtual currency without a clear price in euros, combined with undisclosed in-game advertising, created an environment where children could be misled into spending money or unknowingly engaging with commercial content.
The decision reinforces the principle that games aimed at children require additional care, and companies must prioritize clarity, honesty, and compliance with advertising standards to avoid misleading practices.
* Fourth-year law student at the Belgrade University School of Law, intern at BDK Advokati.
Photo by Shubham Dhage on Unsplash
