Supercell, the maker of video games Clash of Titans and Clash of Clans is facing a proposed class-action lawsuit alleging that it is using “loot boxes” to promote gambling to children and adults.
Chinese internet giant, Tencent Holdings (NASDAQ: TCEHY) owns a majority stake in Supercell, which is based in Helsinki. It is also the developer of the popular video games Clash Royale and Brawl Stars.
The plaintiff filed the lawsuit in the federal court in San Jose, California, and is asking for a jury trial.
Gaming or gambling?
In the lawsuit, the plaintiff alleged that Supercell, through its popular Clash Royale and Brawl Stars video games is engaging in predatory practices. It is allegedly using a “Freemium” pricing strategy to entice consumers including children and adults download their products only to get money through the loot boxes for additional features.
The plaintiff also accused Supercell of encouraging its consumers “to engage in gambling and similar addictive conduct in violation of California laws designed to protect consumers and to prohibit such practices.”
