Electronic Arts Faces Canadian Class Action Suit

Electronic Arts and its Vancouver office Electronic Arts (Canada), are facing a new class action suit filed by a pair of plaintiffs. Mark Sutherland from British Columbia, and Shawn Moore from Ontario, filed their Notice of Civil Claim against the developer on September 30th. Mark Sutherland purchased loot boxes in EA’s Madden NFL series, while Shawn Moore purchased loot boxes in the NHL series of games.

The suit, first picked up and reported on by gaming and e-sports law blog The Patch Notes, posits that EA’s inclusion of loot boxes in its games is illegal in Canada as the company does not have a license “to operate gambling, gaming or lottery businesses” in the region. The lawsuit aims to secure “damages for unjust enrichment arising from” these unlicensed sales, maintaining that EA’s inclusion of loot boxes contravenes Canada’s criminal code, chiefly section 197. Essentially, this section establishes the terms and definitions by which a business or practice would be considered gambling.

The Notice of Civil Claim thus details how EA’s inclusion and sale of loot boxes falls under, and violates, this section of the Criminal Code. The plaintiffs further claim that the sale of loot boxes in EA’s games contravenes British Columbia’s Business Practices and Consumer Protection Act.

This document, which essentially starts the lawsuit, was filed with the Supreme Court in British Columbia. It allows EA three weeks from the date of filing to respond. This response has not yet been filed at the time of writing, but is expected later this week. After the response is filed, The Patch Notes writes, it will likely be several months before any more news emerges publicly.

This next step — provided the suit doesn’t end with an out-of-court settlement — is likely to be a class certification hearing, which is open to the public and “may see some media coverage.” The Patch Notes reminds us, however, that the nature and scope of such legal cases is that in the absence of an out-of-court settlement, the suit could stretch out for years before a trial is scheduled.

The lawsuit lists over 60 EA video game titles that sell lootboxes to players, including FIFA, Madden NFL, NBA Live, Battlefield, Mass Effect, Need for Speed, Dragon Age, Plants vs. Zombies, and more, including several mobile games. Curiously, Star Wars: Battlefront didn’t make this list, despite being at the heart of much of the conflict around EA’s loot boxes previously.

While the lawsuit names two plaintiffs, the nature of the class action suit being brought against EA is such that the plaintiffs are “suing not only on their own behalf, but on behalf of everyone else in Canada who bought any loot boxes in any games published by EA since 2008.” In the unlikely scenario wherein every claim brought against the company is successful, “then in theory EA could be forced to pay back everything it’s made off loot boxes since 2008,” The Patch Notes explains.

It’s important to note that this case is not (at present) a criminal one, despite the alleged contravention of Canada’s Criminal Code. For as long as the case remains solely a civil suit, EA can at most only be expected to pay a considerable sum in damages to the plaintiffs and members of the class action. Nonetheless, if the court rules for the plaintiffs that EA’s sale of loot boxes does indeed violate the Criminal Code, pressure on the Canadian government may increase.

It might face greater expectations to establish stricter regulations around loot boxes or take some other form of legal action against EA and other actors in the video game industry. For players who may be affected by the suit’s outcome, there isn’t much to do but wait at present. However, should the case — in the longer term — settle with some form of compensation being paid to members of the class action, some communication will likely be sent to the contact information attached to the EA account used to buy the loot boxes in the first instance.