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Leon Xiao

@leonxiao.com
1.6K followers 1.1K following 961 posts

Assistant Professor @ CityUHK | Loot Boxes; Video Game Law 🎮🎰 | Empirical Legal & Policy Research | Pro Screenshotter 📱📸 | leonxiao.com

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Leon Xiao @leonxiao.com · 17/09/2026
I don’t think so. Bank card, ID, biometrics; some personal data have to be handed over. Conceivably, could one download a completely local but reliable biometric assessment system that processes the data only offline?
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Leon Xiao @leonxiao.com · 14/09/2026
3️⃣🇺🇸: The bill in New York seeking to prohibit loot boxes whose prizes can be converted into real money continues to be amended and progressed through the legislative process: www.nysenate.gov/legislation/....
nysenate.gov
NY State Assembly Bill 2025-A9044B
Prohibits a person to offer or promote instant payout loot boxes to New York consumers.
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Leon Xiao @leonxiao.com · 14/09/2026
2️⃣ 🇲🇾: Malaysia consults on how to regulate loot boxes (24 October 2026 deadline): contentforum.my/wp-content/u.... Proposed requirements include: disclosing loot box presence, probabilities, and the ringgit equivalent price and allowing parents to disable loot box purchasing.
contentforum.my
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Leon Xiao @leonxiao.com · 14/09/2026
Directly relying on my research on Belgium's failed ban on loot boxes, this proposal does not seek to prohibit minors from accessing loot boxes per se, only when they lack parental consent.
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Leon Xiao @leonxiao.com · 14/09/2026
Instead, (non-self-declaration-based) age verification must be conducted, such that parents can make an informed decision as to whether the game should be allowed for their children: e-seimas.lrs.lt/portal/legal....
e-seimas.lrs.lt
XVP-1842 AIŠKINAMASIS RAŠTAS dėl Nepilnamečių apsaugos nuo neigiamo viešosios informacijos poveikio įstaty...
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Leon Xiao @leonxiao.com · 14/09/2026
Three loot box news items from September 2026. 1️⃣🇱🇹: Lithuania proposes to prohibit games with loot boxes from being directly offered to under-18s.
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Leon Xiao @leonxiao.com · 01/09/2026
Published with Nicole Khoo in Information & Communications Technology Law: doi.org/10.1080/1360....
doi.org
Misleading omissions of loot box presence disclosures: widespread unfair commercial practices in video game advertising on social media in Ireland and the EU
Loot boxes, gacha, and other gambling-like in-game purchases offer random rewards for money and may cause consumer harm, especially to children. Interpreting and strictly enforcing pre-existing con...
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Leon Xiao @leonxiao.com · 01/09/2026
In contrast, the Irish advertising industry self-regulator has found that a disclosure is not required on the face of the ad if a disclosure is provided on the linked app store product page. The Irish statutory consumer regulator has not opined either way.
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Leon Xiao @leonxiao.com · 01/09/2026
For context, the UK and Dutch advertising industry self-regulators have agreed with the European Commission that the loot box presence disclosure must be on the face of the ad.
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Leon Xiao @leonxiao.com · 01/09/2026
However, this unjustifiable delay of at least several years harms consumers who deserve the standard of protection already promised to them by previously adopted laws.
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Leon Xiao @leonxiao.com · 01/09/2026
It is unfortunate that several EU member states have decided against proactively enforcing the UCPD to address video game-related concerns as a matter of policy, because they expect the DFA to deal with the problems.
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Leon Xiao @leonxiao.com · 01/09/2026
Policymakers should cautiously approach the DFA: (i) properly enforcing pre-existing law could already achieve some proposed aims, and (ii) the DFA’s eventual enforcement is unlikely to be effective, so any expectations and reliance must be realistic.
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Leon Xiao @leonxiao.com · 01/09/2026
Notwithstanding, I am not unsympathetic towards the view that the DFA risks overregulation and is similarly likely to be very difficult to enforce, just like the UCPD.
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Leon Xiao @leonxiao.com · 01/09/2026
Contrarily, leading companies with European headquarters or significant local presence are hiding important information from consumers, even though their trade bodies were directly told by the European Commission to ensure compliance in 2022 (commission.europa.eu/document/dow...).
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Leon Xiao @leonxiao.com · 01/09/2026
We thus discredit the video game industry narrative—currently being used to lobby against the forthcoming EU Digital Fairness Act (DFA)—that only a small minority of bad actors in foreign countries are harming EU consumers.
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Leon Xiao @leonxiao.com · 01/09/2026
88.6% failed to disclose at all, and 9.0% disclosed without sufficient visual prominence. This rule is based on the European Commission’s interpretation of existing EU consumer law, the Unfair Commercial Practices Directive (UCPD).
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Leon Xiao @leonxiao.com · 01/09/2026
The European Commission requires companies to disclose the presence of loot boxes in video game advertising. However, we found that only 2.4% of Irish social media ads for popular games containing loot boxes were compliant with EU consumer law: doi.org/10.1080/1360....
doi.org
Misleading omissions of loot box presence disclosures: widespread unfair commercial practices in video game advertising on social media in Ireland and the EU
Loot boxes, gacha, and other gambling-like in-game purchases offer random rewards for money and may cause consumer harm, especially to children. Interpreting and strictly enforcing pre-existing con...
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Leon Xiao @leonxiao.com · 01/09/2026
I discuss loot boxes, the non-enforcement of existing consumer and gambling regulations, and our studies using ad repositories provided by social media platforms as mandated by Article 39 of the Digital Services Act, which is excellent not just for research but also for journalism and enforcement.
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Leon Xiao @leonxiao.com · 01/09/2026
I was invited to share our research through the newsletter of the European Centre for Algorithmic Transparency (ECAT) of the European Commission: ec.europa.eu/newsroom/jrc....
ec.europa.eu
JRCSEVILLE - Community research
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Leon Xiao @leonxiao.com · 19/08/2026
It has been nine years since Star Wars Battlefront II. Consumers deserve the protection already promised to them by the Unfair Commercial Practices Directive.
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Leon Xiao @leonxiao.com · 19/08/2026
I comment on failed regulations and litigation elsewhere, the application and enforcement of pre-existing EU consumer law, and importantly, why we should not just do nothing whilst waiting for the Digital Fairness Act (which has a clear potential to overregulate).
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Leon Xiao @leonxiao.com · 19/08/2026
An IGN article in Deutsche about German 🇩🇪 and EU loot box regulation that comprehensively presents perspectives from (pro-regulation) policymakers, industry, academia, the age rating organisation, and clinical practice. Make your own judgment. Extensively researched by @achimfehrenbach.bsky.social.
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Leon Xiao @leonxiao.com · 19/08/2026
The default option matters. When trying to promote open access, surely the default choice presented first should be the most open CC-BY, although one can see why a commercial publisher would be conflicted in suggesting CC-BY-NC-ND instead...
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Leon Xiao @leonxiao.com · 12/08/2026
You come upon a fork in the path: junk mail edition 1. Get paid to publish a gambling affiliate link on your website (Did they even read what else is on that website? Almost tempted to say yes to study their procedure) 2. Claim an AI chatbot pretending to be me answering questions from parents?!
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Leon Xiao @leonxiao.com · 11/08/2026
Big oof. OSF is removing file/data sharing capabilities: www.cos.io/osf-changes. I understand this is due to funding challenges. Need to find another repository. Bad news for #OpenScience.
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Leon Xiao @leonxiao.com · 02/08/2026
My team actually cracked open and documented the disclosure features of those blind boxes and card packs that you see on display before me in the photo in the article.
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Leon Xiao @leonxiao.com · 02/08/2026
Our research at the Creative Media Policy Observatory, School of Creative Media, City University of Hong Kong this past year would not have been possible without generous institutional funding and the support of my team (Callum Deery, Kuma Xiaoyu Xiong, Yuchen Huang, Elvis Lo, and Xiaoyao Ren).
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Leon Xiao @leonxiao.com · 02/08/2026
As part of this new project, we will identify and report non-compliant cases to the Department for further action and create a free public website detailing global loot box regulation to better inform all stakeholders. Stay tuned!
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Leon Xiao @leonxiao.com · 02/08/2026
Happily, the University Grants Committee (Hong Kong) recognises the importance of this issue and has, since the SCMP interview, announced that it will fund my project assessing loot box regulatory compliance in Hong Kong: cerg1.ugc.edu.hk/cergprod/scr....
cerg1.ugc.edu.hk
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Leon Xiao @leonxiao.com · 02/08/2026
Indeed, the SCMP reports that said Department has “received 127 complaints related to loot boxes, trading cards and blind boxes between 2021 and 2025” and has undertaken to enforce against any breaches.
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Leon Xiao @leonxiao.com · 02/08/2026
The Dutch advertising regulator (Stichting Reclame Code) has enforced it following my complaint. The Customs and Excise Department of Hong Kong, charged with enforcing this Ordinance, should do so as well.
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Leon Xiao @leonxiao.com · 02/08/2026
The relevant Section 13E of the Trade Descriptions Ordinance is substantially identical to relevant provisions of UK and EU consumer law. The European Commission has authoritatively interpreted that section as requiring loot box probability and presence disclosures.
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Leon Xiao @leonxiao.com · 02/08/2026
This article by Edith Lin features perspectives from lived experience, support services, prevention education, academic research, and enforcement across Hong Kong. 🇭🇰 I called for stricter enforcement of existing Hong Kong consumer law to mandate probability disclosures.
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Leon Xiao @leonxiao.com · 02/08/2026
The South China Morning Post SCMP raises awareness of concerns around #LootBoxes and other gambling-like products and calls for further research: www.scmp.com/news/hong-ko....
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Leon Xiao @leonxiao.com · 01/07/2026
These cases are fact-dependent: possibly a different story for a bus ad linking directly to the app store download page of a mobile game with loot boxes. May I suggest that it would just be safer to disclose, rather than try your luck with the second part of the legal test?
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Leon Xiao @leonxiao.com · 01/07/2026
This is the first time that the ASA has not upheld at least one aspect of my complaint and wholly dismissed it. I am pleased to see further clarification of the rules. This is why we bring these test cases.
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Leon Xiao @leonxiao.com · 01/07/2026
The ad did not provide an in-game purchase disclosure and thus omitted material information. However, the ad “was unlikely to cause the average consumer to take a transactional decision they would not otherwise have taken.” The second part of the legal test is often forgotten but also important.
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Leon Xiao @leonxiao.com · 01/07/2026
For the reasons above, due to the specific nature of the in-game purchases in Borderlands 4 (non-repeatable DLCs) and the specific context in which this ad was shown (inevitably distanced from the purchasing decision), the ad was deemed NOT misleading.
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Leon Xiao @leonxiao.com · 01/07/2026
These differentiate them from traditional in-game purchases where no such disclosures would be given once the player is inside the game to make the purchases in the in-game store.
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Leon Xiao @leonxiao.com · 01/07/2026
4️⃣: Finally, the DLCs could only be purchased through a platform store and not inside the game itself, and PEGI’s “in-game purchases” would be shown on those platforms.
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Leon Xiao @leonxiao.com · 01/07/2026
Thus, the ASA decided that this ad was significantly more distant from the actual purchasing decision of the game, when compared to ads in other contexts (e.g., a social media ad linking directly to an app store download page).
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Leon Xiao @leonxiao.com · 01/07/2026
Further, the ad was on a bus, meaning that consumers were likely to only see it briefly, and sometimes at a distance while moving, so they would have to otherwise look up the game to purchase it.
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Leon Xiao @leonxiao.com · 01/07/2026
3️⃣: The content of the ad and the context in which it is usually seen are also relevant. The bus ad did not include an explicit call to action to purchase and a price or directly link consumers to a point of purchase, such as via a QR code linked to its Steam page.
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Leon Xiao @leonxiao.com · 01/07/2026
A disclosure would more likely be required for the latter and may not be required for the former. In this case, the in-game purchases were just non-repeatable DLCs: store.steampowered.com/dlc/1285190/....
store.steampowered.com
Steam DLC Page: Borderlands® 4
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Leon Xiao @leonxiao.com · 01/07/2026
Those should be distinguished from repeatable purchases, like premium virtual currencies and loot boxes. A disclosure would more likely be required for the latter and may not be required for the former.
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Leon Xiao @leonxiao.com · 01/07/2026
2️⃣: However, the nature of the “in-game purchases” in a game is relevant as to whether a presence disclosure is required. There are one-time purchases, like DLCs that provide additional story missions.
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Leon Xiao @leonxiao.com · 01/07/2026
1️⃣: As a matter of principle, traditional DLCs bought through third-party platform stores are “in-game purchases” within the meaning of advertising regulations, because consumers would consider them as additional purchases they might make after purchasing the game itself.
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Leon Xiao @leonxiao.com · 01/07/2026
An ad for Borderlands 4 on a bus was NOT required to disclose the presence of in-game purchases, due to specific circumstances, per the Advertising Standards Authority (ASA): www.asa.org.uk/rulings/take....
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Leon Xiao @leonxiao.com · 24/06/2026
Abstract submissions for the Gam(bl)ing conference are flooding in. Don't forget to submit yours before the 26 June deadline this Friday (we won't check until after the weekend... 😉): tinyurl.com/thegamblings...!
tinyurl.com
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Leon Xiao @leonxiao.com · 18/06/2026
... Riot Games (R$15 million), Ubisoft (R$10 million), Valve (R$10 million), Konami (R$8 million), and Nintendo (R$5 million).
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