The Consumer Protection Committee of the Executive Yuan reviewed and approved the amendment drafted by the Ministry of Economic Affairs (MOEA) to Item 6 of the Mandatory and Prohibitory Provisions of Standard Contract for Online Game Connection Service, adding provisions related to disclosing the odds of loot-box rewards in online games. (Note: loot boxes can be broadly categorized as virtual containers of hidden and randomized in-game items. Once purchased (usually via real currency, in-game currency, in-game progression or otherwise gifted) and subsequently opened, the loot box reveals the identity of the randomized in-game items which now belong to the player.) The amendment further protects consumers’ interests compared to the original provisions. The MOEA will make follow-up announcements according to law and provide counsel on compliance to companies. The key points of the amendment are as follows:

I. Requiring game companies to disclose the draw probability of loot-box rewards:

In view of the fact that the disclosure of the draw probability of loot-box rewards is important information that may affect consumers’ transaction decisions as well as a frequent source of consumer disputes, the requirement for game companies to disclose the draw probability for items from loot boxes on the main page of their official website, the login page or the purchase page of the game, and on game packaging was added. Full disclosure of information will enhance the protection of consumers’ interests.

II. Stipulating the definition of loot box drop rates:

In order to further clarify the scope of loot boxes for which the drop rates should be disclosed, the definition of drop rates was set forth as, after in-game purchases, the consumers’ chances of obtaining items from a loot box or of obtaining items only after completing additional required activities.

III. Stipulating the scope of disclosure regarding loot box drop rates:

To protect consumers’ right to information, the scope of disclosure regarding drop rates was set forth as “loot box rewards directly/indirectly obtained or requiring partial/full payment,” i.e., as long as paid purchases are involved, regardless of how the loot box rewards change their forms or the number of changes, their drop rates should always be disclosed:

(I) Direct: Consumers can directly obtain an item after paying. Examples include: If consumers will obtain Perfume A (virtual item) in a draw after paying, the game company shall disclose the drop rate for Perfume A.

(II) Indirect: Consumers can indirectly obtain an item after paying. Examples include: If consumers will obtain Perfume A in a draw after paying and can then use 3 bottles of Perfume A to synthesize 1 bottle of Perfume B, the game company shall also disclose the chances of successfully synthesizing Perfume B.

(III) Partial payment: Obtaining an item or participation in an event requires payment, and consumers need to make payments for some of the features. Examples include: In a situation where consumers can open chests with keys, and the chests can be obtained for free by defeating monsters, but the event keys need to be purchased, the drop rates for items from chests shall also be disclosed.

(IV) Full payment: Obtaining an item or participation in an event requires payment, and consumers need to make payments for all of the features. Examples include: In a situation where consumers can open chests with keys, and both the chests and the event keys need to be purchased, the drop rates for items from chests shall be disclosed.

IV. Stipulating the methods of disclosure of drop rates:

In order to prevent disclosure by companies in vague and imprecise ways in practice (such as: very high or very low), it was stipulated that drop rates should be stated as percentages (%) so that consumers can objectively understand better the lottery nature of the rewards or events and in turn make rational judgments in their consumption.

The Executive Yuan's Department of Consumer Protection (DCP) wishes to remind consumers that buying loot boxes or participating in events does not guarantee receiving a specific drop. Before paying for loot boxes or participating in events, consumers are advised to first verify whether the loot box or event clearly discloses the drop rates and carefully read the information on drop rates to prevent excessive spending in impulse buying without getting anything in return.

Lastly, the DCP urges game companies to honestly disclose drop rates and fully disclose information on receiving drops to create a friendly gaming environment. The contract that game companies provide must comply with the regulations of the "Mandatory and Prohibitory Provisions of Standard Contract for Online Game Connection Service." Should the contract not conform to the provisions, it shall be revised within the prescribed period. For companies that do not revise the contract within the prescribed period, the competent authorities may impose a fine between NT$30,000 to NT$300,000 in accordance with Article 56-1 of the Consumer Protection Act. Those that do not make corrections within the second prescribed time period shall be imposed a fine between NT$50,000 and NT$500,000, which shall be imposed for each subsequent offense.