Video game “loot boxes” – digital mystery packages that generate random virtual items in exchange for real money – are a multi-billion-dollar business. But are they deceptive? Unconscionable? Illegal gambling? In Electronic Arts Inc v Sutherland, the British Columbia Court of Appeal weighed in on all three questions, dismissed both Electronic Arts’ (EA) appeal and Mr. Sutherland’s cross-appeal, and allowed a certified class action over the sale of loot boxes to proceed.
Background
The representative plaintiff, Mark Sutherland, brought the underlying claim on behalf of a proposed class of BC residents who paid for loot boxes in 77 of EA’s online video games since 2008. The games span sports franchises such as Madden NFL and FIFA, multiplayer battle games such as Apex Legends, and simulation games such as SimCity BuildIt. In each, loot boxes generate virtual items (some functional, some purely cosmetic) whose specific contents are unknown to the user before purchase.
