A year after new laws came into force requiring video games with loot boxes and simulated gambling to carry higher age restrictions, a new analysis by researchers in the Sydney Games and Play Lab has found widespread non-compliance and misleading age ratings across the major app stores.
The study, led by Professor Marcus Carter from the School of Architecture, Design and Planning shows that one in five (20 percent) of the top 100 games on Apple's App Store are incorrectly classified, while nearly half of the top 100 games (48 percent) on Google Play carry the wrong age label.
This comes despite the fact that under the new rules, games featuring loot boxes must be rated M15+, and games with simulated gambling are required to carry an R18+ classification in Australia.
"This is not a minor paperwork issue - this is about protecting children and families," said Dr Carter, Professor in Human Computer Interaction.
"Parents are relying on age ratings to decide what their kids can and can't play. Right now, they are being misled by inconsistent, confusing and sometimes deceptive information on the app stores."
Dr Marcus Carter
Professor in Human Computer Interaction, School of Architecture, Design and Planning
Millions in revenue, minimal penalties
Under current law, the maximum penalty for mislabelling a game is around $6,000 - a figure dwarfed by the enormous revenues these titles generate. Many of the top-grossing games earn millions of dollars a day, creating little incentive for publishers to ensure compliance.
Dr Leon Xiao, an Assistant Professor at the City University of Hong Kong and global expert on the regulation of loot boxes, also contributed to the studies. Dr Xiao also notes the fractured approach to enforcing non-compliance with the classification scheme.
"The current enforcement regime is scattered across both state and federal laws. Various authorities should better coordinate to ensure video game companies offering the same products across Australia in the same app stores are properly punished for non-compliance," said Dr Xiao.
A confusing landscape for parents
The research also uncovered cases where games displayed multiple conflicting age ratings.
"This is misleading and deceptive conduct designed to induce sales and in-app purchases from children," said Dr Carter.
"If a game is 18+, it should be labelled 18+ in the store, plain and simple."
To understand how widespread the problem is, the researchers examined the top 31 grossing mobile games in Australia. The results were stark:
Only one game carried a consistent age rating across the Apple App Store, Google Play Store, privacy policies and terms of service.
Over half (fifty-eight percent) of games displayed four different age ratings simultaneously.
The lack of uniformity, the researchers argue, makes it almost impossible for parents to navigate the system and make informed decisions.
"How is a parent meant to make sense of this? One platform says 4+, another says 15+, the developer says 18+. The only consistency is confusion," Dr Carter said.
"The government brought in these laws to protect children, but without strong enforcement, families are being left in the dark."
One year on - a call for enforcement
22 September marks one year since the new classification rules came into effect. The updated laws were introduced following community concern about the risks of loot boxes - which mimic gambling mechanics - and simulated gambling in games accessible to children.
The one-year "post-mortem" study suggests that compliance remains low, oversight is limited, and penalties are too weak to drive change.
Dr Carter is calling for regulators to urgently step in.
"This is a systemic failure. The rules are there, but they're not being enforced. If Apple, Google and major game publishers can't or won't ensure accurate classification, the government must take stronger action."
Dr Marcus Carter
Recommendations
The report recommends:
Stronger penalties for misclassification, scaled to company revenue rather than a flat fine.
Enforcement action against misleading and deceptive age ratings, particularly where multiple classifications are displayed.
One consistent age rating across app stores, privacy policies and terms of service, in line with Australian law.
Clearer guidance for parents, with mandated warnings on loot boxes and simulated gambling.
