Brazilian Justice Opens Process to Ban Loot Boxes

Brazilian Justice accepted an inquiry by the National Association of Child and Adolescent Defense Centers (ANCED, from the acronym in Portuguese) to ban the commerce of loot boxes in the country. The main argument used by ANCED is that the boxes are a harmful form of gambling, which is illegal in Brazil.

The companies mentioned in the process included Activision, Electronic Arts, Riot Games, Garena, Nintendo, Konami, Valve, Ubisoft, Tencent, Microsoft, Apple, Google, and Sony

According to a report by Brazilian website The Enemy, which had access to the process running against Free Fire publisher Garena, the fine for each day of commercialization of loot boxes after its prohibition might add up to $4M BRL (roughly $693K USD). The process will still be analyzed by the country’s judicial power, so the companies are not yet compelled to remove loot boxes from their stores immediately.

The Esports Observer contacted Garena and Riot Games, but the companies declined to comment at the time of writing.

The action is being undertaken through the powers granted by the State and Common Law and does not have any connection with the current Brazilian government. The use of loot boxes by game developers has caused controversy in many other countries around the globe, including the U.S, Germany, and the U.K., and is currently considered illegal in Belgium and the Netherlands. 

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