- In-app purchases are a popular way for individuals and businesses to make money. Rather than charging people a fee to download an app/game, they offer it for free and offer the option to purchase features and content inside the app. In games these can include unlocking extra levels and characters, purchasing extra lives or energy to extend your play time or removing the adverts that might interrupt the gameplay. Some social networking apps also offer the ability to purchase products without leaving the app.
- In-app purchases can be made by prepaid gift voucher, credit card or an online payment system linked to a bank account. Some in-app purchases are ‘one-off’, others may be recurring monthly or annual subscriptions to access content.
- Loot boxes are mystery items that can be purchased in games. Their contents are random so opening a loot box might yield some very common items or something rare or unique. They may contain in-game items and power ups or cosmetic items that can change the appearance of a player’s character and their items. These cosmetic items are often referred to as ‘skins’ and rare or unique skins are highly sought after in the game. Players may use skins to enhance their reputation or image in the same way as people offline wear designer brand clothing.
- Because the contents of loot boxes are random and subject to a degree of chance, some countries have likened this to gambling. As it is illegal to offer gambling services to children, some countries have banned the sale of loot boxes in any games that may be used by children.
- As rare skins for popular online games are highly sought after, a number of third party websites have been set up to allow players to trade, buy and sell their skins for other skins or real money. Some of these websites also offer ‘skin betting’ to allow players to bet their common skins in the hope of receiving a rare one. These sites are not officially affiliated with the game, so any trading of skins by a player could result in them being banned from the game on which the skins are used. Sites that do not have a gambling licence and are permitting children to bet skins are also forms of illegal gambling.
Advice:
- As in-app purchases and loot boxes can be made with real money or virtual currency, it is important to encourage your child to always ask permission before they make a purchase. Some children can find it difficult to distinguish between spending real currency or virtual currency in a game.
- Explain how loot boxes work to your child and that they operate on chance – there is no guarantee of getting what they want or hope for. Remind them that the chances of receiving a very rare item are going to be extremely low and that purchasing many loot boxes would not significantly increase their chances of getting something rare.
- Remind your child to only use the official marketplace provided by the game or app – websites other than the official website for the game/app are likely to be in breach of the terms and conditions of the game/app, and using them to purchase items could result in your child’s account being blocked or banned on the game/app.
- Explore settings for restricting in-app purchases in the games and apps your child uses. Most in-app purchases can be controlled via settings in the app store. Some devices may also offer settings or parental controls that can restrict in-app purchasing.
- It is a good idea to password protect in-app purchasing on the app stores your child uses. You can also set it to require a password every time a purchase is attempted. This can ensure that your child has to ask you to input the password every time they want to buy something. Most importantly, do not share this password with your child!