"Need Before Greed" not working?

Hi. First time posting here, hopefully in the correct section.

So, I noticed that when I make a group and set the looting rules to "Need Before Greed", nothing actually changes. It's basically identical to "Group Loot". (I can click Need on axes and swords and plate items, even though I'm a Priest).

Is there something I'm doing wrong or am I misunderstanding this? I was under the impression that "Need Before Greed" should work in the same way as the looting works in RDF. But when I make my own group and set the looting to "Need Before Greed", again, it's as if it's still on "Group Loot".

Is this a bug? Just a broken feature? If so, should I expect this to be fixed? Or maybe this is intentional. I would like some clarification on this :D

Thank you in advance.

P.S

I tried searching for this and I only found this very old thread about it here: http://forum.warmane.com/showthread.php?t=316395
But it's such an old thread, things might have changed since then, so I made this new thread here.