FTC promises to investigate loot boxes

ronjor · Nov 28, 2018

By Rob Thubron 28 Nov 2018

“Loot boxes are now endemic in the video game industry and are present in everything from casual smartphone games to the newest, high budget releases,” said Hassan. She went on to say that they “represent a $50 billion industry by the year 2022.”
Click to expand...

guest · Nov 28, 2018

The FTC is investigating loot boxes — but not for the right reasons
November 28, 2018
https://thenextweb.com/gaming/2018/11/28/ftc-loot-box-investigation/

[...] the UK Commission report [...] doesn’t draw a connection between loot boxes and the rise of youthful gambling. A Commission spokesperson told GI.biz: [...]

While loot-boxes are a trend worth investigating, basing the inspection on an untrue assumption about a link between them and a child’s future gambling habits isn’t the best reason.
A better one would probably be to see whether (as was the case with Battlefront 2) the lootboxes in question were unfair to players who purchased them.

If the Senator’s concerns are for children playing the game, then a more dangerous part of it might be that, since children paying for loot boxes generally have access to a form of money, they’re more vulnerable to scam sites and credit card thieves.
Click to expand...

guest · Nov 30, 2018

IGDA exec warns the gaming industry to regulate itself regarding loot boxes, or else
If the industry doesn't, world governments will
November 29, 2018
https://www.techspot.com/news/77658-igda-exec-warns-gaming-industry-regulate-itself-regarding.html

Big quote: "By not taking significant action as an industry and global game developer community to self-regulate how loot boxes are used, we run the very real risk that governments around the world will take that action for us." International Game Developers Association (IGDA).

Naturally, government regulation is the last thing the game industry wants. However, its inability or unwillingness to police itself when it comes to loot boxes may force the situation out of their hands.
Indeed, that's precisely what the International Game Developers Association warned the industry about in a blog post published yesterday. The post, dubbed "Call to Action: Loot Boxes," claims that recent investigations into loot boxes in games should be a "clear wake-up call" to publishers and developers everywhere.

After all, loot boxes are a major source of cash for AAA game studios. Anything that jeopardizes that income will likely be rejected or heavily scrutinized.
Click to expand...

guest · Jan 31, 2019

EA gives in to Belgian regulators, stops selling FIFA loot boxes
January 30, 2019
https://arstechnica.com/gaming/2019...ian-regulators-stops-selling-fifa-loot-boxes/

Electronic Arts is halting the sale of its FIFA Points virtual currency in Belgium. The move effectively ends the ability to buy randomized, in-game FIFA Ultimate Team card packs in the country, which the Belgian Gaming Commission has ruled is a form of illegal gambling.

A has spent the last few months defying a Belgian order to stop selling those Ultimate Team packs in the local version of the game, drawing an investigation from the country's prosecutor's office.
Blizzard, Valve, and 2K had already removed loot boxes from the Belgian versions of their games in the wake of the Gaming Commission decision.
Click to expand...

guest · Feb 22, 2019

FTC plans to examine loot boxes with public workshop later this year
Move represents the first federal government action on an increasingly political issue
February 22, 2019
https://arstechnica.com/gaming/2019...t-boxes-with-public-workshop-later-this-year/

In response to a request from Sen. Maggie Hassan (D-N.H.), the Federal Trade Commission now says it will be convening a "public workshop on loot boxes" later this year.

The FTC said it hopes to attract "consumer advocacy organizations, parent groups, and industry members" to take part in the workshop, according to a letter from FTC Chairman Joseph Simons provided to Hassan.
And though the FTC in November revealed publicly that it is investigating the loot box issue, Simons also notes that he can't publicly comment on any potential law enforcement efforts in the space that might be ongoing.

The workshop is the first public sign of any concrete US government action on the issue of video game loot boxes since the FTC investigation was launched. Some observers and politicians liken the purchase of randomized loot boxes full of in-game items to a form of gambling, saying the loot boxes therefore shouldn't be accessible by children.
Click to expand...

guest · Mar 27, 2019

Blizzard tweaks loot boxes in Heroes of the Storm amid gambling controversy
March 26, 2019
https://thenextweb.com/gaming/2019/03/26/blizzard-loot-boxes-heroes-of-the-storm-gambling/

Given the battle that game publishers are fighting with officials across the globe over loot boxes, it’s possible this is an sign of things to come — an experiment Blizzard is running with one of its smaller games that could prevent trouble for its bigger ones, and gauge how an invested community of gamers will respond.

The FTC is reportedly still in the process of investigating the practice, to see if they constitute a threat to consumers, though the investigation was suspended during the government shut-down.

To be clear, you can still buy specific heroes, gameplay boosts, and other items within the game with Gems. You just can’t use Gems to buy loot chests, meaning it’s technically no longer gambling. It’s not the most thorough solution — that would be to do away with loot chests entirely — but it’s a way of wriggling out of the more problematic aspects of the game feature.
Click to expand...

ronjor · Apr 5, 2019

FTC to Hold August Workshop on Consumer Issues Related to Loot Boxes

April 5, 2019
The workshop, “Inside the Game: Unlocking the Consumer Issues Surrounding Loot Boxes,” will bring together a variety of stakeholders, including industry representatives, consumer advocates, trade associations, academics, and government officials to discuss concerns regarding the marketing and use of loot boxes and other in-game purchases, and the potential behavioral impact of these virtual rewards on young consumers.
Click to expand...

ronjor · May 8, 2019

Video game ‘loot boxes’ would be outlawed in many games under forthcoming federal bill

Craig Timberg May 8 2019
Video games popular among kids would be prohibited from offering “loot boxes” or randomized assortments of digital weapons, clothing and other items that can be purchased for a fee, under federal legislation to be introduced by Republican Sen. Josh Hawley (Mo.).
Click to expand...

guest · May 22, 2019

Nintendo pulls two free-to-play mobile titles from download in Belgium to comply with loot box laws
Removing loot boxes wasn't enough for Nintendo
May 22, 2019
https://www.techspot.com/news/80177-nintendo-pulls-two-free-play-mobile-titles-download.html

Perhaps due to this mainstream attention, regulators throughout the world began launching their own investigations into whether or not loot boxes violate gambling laws due to their unregulated nature.
Unfortunately for fans of Fire Emblem Heroes and Animal Crossing: Pocket Camp (both free-to-play mobile titles with loot boxes), Nintendo has decided to go the nuclear route. Instead of following in the footsteps of EA and Activision Blizzard, the company announced today that it will be pulling both games from Belgian mobile storefronts entirely.

Notably, Animal Crossing: Pocket Camp did not always have loot boxes; the additional monetization was added in a post-launch update. Perhaps Nintendo will revert the game to its previous state to comply with Belgium's laws at a later date.
For now, Nintendo plans to remove the games from Belgian mobile storefronts on August 27, 2019.
Click to expand...

guest · May 23, 2019

Bill to ban the sale of loot boxes to children presses forward with bipartisan support
May 23, 2019
https://www.theverge.com/2019/5/23/...-hawley-markey-blumenthal-privacy-video-games

Today, Sen. Josh Hawley (R-MO) will be formally introducing his bill to ban the sale of loot boxes to children, and two of his Democratic colleagues have signed on in support of the legislation.

Hawley’s Protecting Children from Abusive Games Act would, if approved, prohibit video game companies from selling loot boxes to children under the age of 18 and make it unlawful for minor-oriented games to include pay-to-win mechanics. If a games company was found to be unlawfully including these features in games targeted to minors it would be financially penalized.

“Today’s digital entertainment ecosystem is an online gauntlet for children,” Markey said of the loot box bill. ”Inherently manipulative game features that take advantage of kids and turn play time into pay time should be out of bounds.”
Click to expand...

guest · May 27, 2019

Video game lobbying group trashes proposed anti-loot box bill
May 24, 2019
https://www.digitaltrends.com/gaming/esa-loot-box-ban-bill-reponse/

The ESA, the trade association of the video game industry, roundly condemns aproposed bill that likens loot boxes in today’s games to a form of legalized gambling for children — issuing a blistering statement Thursday that ridiculed its assertions.
The statement doesn’t leave much room for negotiation. It categorically dismisses the bill’s concerns and puts forth the idea that no regulation of any kind should be implemented, opting to collaborate with the bill’s co-sponsors to put more tools in the hands of parents “rather than in the government’s.”

As Hawley stated, he believes that, at worst, this bill could encourage a deeper conversation about monetization in games. The ESA suggesting that regulation would be “harmful to the player experience,” for instance, is a point of contention that deserves further exploration
Click to expand...

guest · May 27, 2019

Loot-boxes are for no-skilled.

hawki · May 30, 2019

"Google Now Requires App Makers To Disclose Loot Box Odds

Google rolled out a new Play Store policy requiring game makers to show players what the chances are of getting any items that might be contained in a paid random-chance scenario..."

https://kotaku.com/google-now-requires-app-makers-to-disclose-loot-box-odd-1835134642

guest · Jun 20, 2019

EA: They’re not loot boxes, they’re “surprise mechanics,” and they’re “quite ethical”
June 19, 2019
https://www.pcgamesn.com/ea-loot-boxes

Kerry Hopkins, EA’s VP of legal and government affairs, insists that the company’s randomised purchases aren’t loot boxes, but rather “surprise mechanics.” [...] Hopkins compares the mechanics to surprise toys, which have been around “for years, whether it’s Kinder Eggs, or Hatchimals, or LOL Surprise.”

In response to questions from Scottish National Party MP, Brendan O’Hara, Hopkins says “We do think the way that we have implemented these kinds of mechanics – and FIFA of course is our big one, our FIFA Ultimate Team and our packs – is actually quite ethical and quite fun, quite enjoyable to people.
Obviously, that also means that EA disagrees with the anti-loot box stance taken by Dutch and Belgian regulators.
Click to expand...

guest · Jul 29, 2019

ronjor said: ↑

FTC to Hold August Workshop on Consumer Issues Related to Loot Boxes
Click to expand...

FTC Releases Agenda for Loot Box Workshop on August 7
July 29, 2019
https://www.ftc.gov/news-events/pre...tc-releases-agenda-loot-box-workshop-august-7

The FTC has released the final agenda for its August 7, 2019 workshop that will examine consumer protection issues related to video game “loot boxes,” in-game rewards players can buy while playing a video game.

The first panel will explore the role of loot boxes and similar mechanics in the video game ecosystem and the impact of these monetization models on end users. It will be followed by a discussion on the potential social, psychological, and economic motivations associated with loot box spending.
The last panel will focus on current initiatives for disclosing in‐game micro-transactions and explore ideas for other mechanisms that may enhance consumer protection.
Click to expand...

final agenda (PDF): https://www.ftc.gov/system/files/documents/public_events/1511966/insidethegame_final_agenda_20190726_002.pdf

guest · Aug 6, 2019

Rocket League is dropping lootboxes
August 6, 2019
https://venturebeat.com/2019/08/06/rocket-league-is-dropping-lootboxes/

On Xbox One, it is the No. 11 most-played game, according to the Microsoft Store. And it’s currently in the top 10 most played games on Steam today. But now under new owner Epic Games, developer Psyonix is dropping the lootbox-style crates that it has used to generate revenue from its dedicated audience.

In a blog post, Psyonix said it will remove crates at some point later in 2019. In place of those lootboxes, the studio plans to introduce a storefront.

“In pursuit of that goal, later this year we will remove all paid, randomized Crates from Rocket League, replacing them with a system that shows the exact items you’re buying in advance.”
The Epic influence
In its blog post, Psyonix made an effort to give some of the credit for this move to Epic.

“This is similar to changes implemented earlier this year by the Fortnite: Save the World team,” reads the blog.
Click to expand...

mood said: ↑

FTC Releases Agenda for Loot Box Workshop on August 7
July 29, 2019
https://www.ftc.gov/news-events/pre...tc-releases-agenda-loot-box-workshop-august-7
Click to expand...

FTC to Host Workshop on Consumer Issues Related to Loot Boxes
August 6, 2019
https://www.ftc.gov/news-events/pre...t-workshop-consumer-issues-related-loot-boxes

What: The Federal Trade Commission will host a public workshop to examine consumer protection issues related to video game “loot boxes”—in-game rewards players can buy or earn while playing a video game.
When: Wednesday, August 7, 10 a.m. – 4:15 p.m. ET
Webcast: The workshop will be webcast. The webcast link will be posted to the event page on the day of the workshop.
Twitter: The event will be tweeted live from the FTC’s Twitter page (@FTC) using the hashtag #LootboxFTC.
Click to expand...

ronjor · Aug 7, 2019

Nintendo, Microsoft, and Sony commit to disclose drop rates for loot boxes

By Makena Kelly@kellymakena Aug 7, 2019
And a handful of publishers, too
Click to expand...

guest · Sep 12, 2019

A UK ban on loot boxes could kill FIFA Ultimate Team as we know it
A report from the Digital, Culture, Media and Sport Committee recommends restricting the sale of loot boxes to children
September 12, 2019
https://www.wired.co.uk/article/fifa-20-ultimate-team-loot-box

These probability-based ‘loot boxes’ have become an increasing feature of all kinds of games over the last decade, both in triple-A titles such as FIFA and as the financial bedrock underpinning free-to-play titles such as Fortnite.
However, they’ve often been criticised for introducing young people to what many consider a form of gambling, and today a government committee has recommended restricting the sale of loot boxes to children.

“Children are especially vulnerable because they lack the maturity to understand that these purchases are manipulative, and their parents may not understand that these purchases are entirely unnecessary.”
It’s too soon to tell whether the change in the interpretation of the law has had much of an impact on users in Belgium. Some e-sports players in the country have complained that the move puts them at a disadvantage compared to their international rivals.
Click to expand...

guest · Oct 17, 2019

So long, supply drops: Call of Duty gets rid of randomized loot boxes
October 17, 2019
https://arstechnica.com/gaming/2019...ll-of-duty-gets-rid-of-randomized-loot-boxes/

In a major reversal for the franchise, Activision has announced that the upcoming Call of Duty: Modern Warfare will not include a loot-box system. Specifically, the company says that "all functional content that has an impact on game balance, such as base weapons and attachments, can be unlocked simply by playing the game."
Pushed back by the pushback?
That hasn't stopped loot boxes from continuing to be a major economic force in the gaming world, and neither has it stopped major publishers like EA from arguing in their favor. But the lack of randomized loot boxes in the next Call of Duty feels like a concrete sign that the public pushback against the practice is having an impact on some of the biggest games in the industry.
Click to expand...

guest · Dec 5, 2019

mood said: ↑

Rocket League is dropping lootboxes
August 6, 2019
https://venturebeat.com/2019/08/06/rocket-league-is-dropping-lootboxes/
Click to expand...

Rocket League update that removes loot boxes has upset many
December 5, 2019
https://www.techspot.com/news/83056-rocket-league-update-removes-loot-boxes-has-upset.html

A hot potato: Psyonix in its latest update for the popular soccer-with-cars game Rocket League has done away with the title’s loot box-like Crates, replacing them with Blueprints that can build items in exchange for credits. The decision isn't being universally accepted, however, as many are upset with the new pricing structure.

Psyonix first revealed plans to remove loot boxes over the summer but they aren’t the first to do so.
As GameSpot highlights, not everyone is happy with the changes. The publication points to a thread on Reddit that has garnered nearly 2,000 comments. Most seem outraged over the new pricing structure; should the debate gain additional momentum, Epic (who bought Psyonix earlier this year) may have to address the matter once again.
Click to expand...

guest · Jan 22, 2020

Loot boxes push kids into gambling, says England's NHS mental health director
Calling for a ban on selling loot boxes to children
January 18, 2020
https://www.pcgamer.com/loot-boxes-push-kids-into-gambling-says-englands-nhs-mental-health-director/

Claire Murdoch, mental health director of England's National Health Service (NHS), has reignited the loot box controversy with a report claiming they push young people into "under the radar" gambling.

"Frankly no company should be setting kids up for addiction by teaching them to gamble on the content of these loot boxes", she said. "No firm should sell to children loot box games with this element of chance, so yes those sales should end."
Murdoch called on game publishers to ban games whose loot boxes encourage children to gamble, as well as to introduce spending limits, tell players the odds of receiving each item before they buy a loot box, and "Support parents by increasing their awareness on the risks of in-game spending".
Click to expand...

guest · Feb 2, 2020

EA’s Microtransaction Billions Explains Why It’s Terrified of Loot Box Laws
February 2, 2020
https://www.ccn.com/eas-microtransaction-billions-explains-why-its-terrified-of-loot-box-laws/

In its new financial briefing [EA], EA revealed that its live services made $993 million in Q3 of the 2020 financial year. This is an “all-time high” for the company and it’s an increase of 27% compared to Q3 FY2019.

Microtransactions in games such as Apex Legends and FIFA Ultimate Team were a huge part of this growth. Apex Legends microtransactions can be used for character and weapon skins. FIFA Ultimate Team sells card packs, like loot boxes, that allow players to unlock new players for their teams.
The growth of live services is unsurprising from a company that has pushed microtransactions so hard. EA once caused controversy with its pay to win Star Wars Battlefront 2 loot boxes.

The publisher would be one of the biggest affected by loot box gambling laws.
Click to expand...

guest · Feb 6, 2020

FIFA is under fire again for loot box gambling with two lawsuits filed in France
February 5, 2020
https://www.techspot.com/news/83881-fifa-under-fire-again-loot-box-gambling-two.html

In context: Despite their controversial nature, loot boxes in video games continue to be a thing. Companies make millions from transactions that do not guarantee anything of real value. Likewise, governments and individuals continue to fight game makers over the stained mechanic.

The battle over the ethics of using loot boxes in video games continues as two new lawsuits have been filed in France against EA. The separate cases both target the publisher’s FIFA franchise alleging that the microtransactional system in its Ultimate Team mode (FUT) is a form of unregulated gambling.
Furthermore, one of the lawyers contends that the system is rigged in such a way that it encourages players to spend more money to up their chances of getting a star player.

“The developers of this game mode have created an illusionary and particularly addictive system,” attorney Victor Zagury told French sports-news outlet L’Équipe. “The more you pay, the more you have the possibility of getting big players.”
Click to expand...

Zagury claims his client spent over 600 euros in five months without receiving a “big player.”
He adds, “We believe that a gambling game has been integrated into this video game because buying packs is nothing more than a bet. Today, an 11 or 12-year-old teenager can, without any restriction, play FUT, and commit money because there is no parental control system in this mode.”

It would seem that the only way that game makers would abandon the system is if players collectively quit buying loot boxes, but that is not likely to happen.
Click to expand...

guest · Apr 13, 2020

ESRB intros new label for loot boxes
April 13, 2020
https://www.gamesindustry.biz/articles/2020-04-13-esrb-intros-new-label-for-loot-boxes

The ESRB today introduced a new ratings designation to indicate when a game has randomized elements among its in-game purchases.

The new designation, or "interactive element" as the rating board calls it, will be assigned to any title with an in-game offer to spend real money on something when players won't know exactly what they'll receive for their money.
While the move is clearly targeted at loot boxes, the phrasing is intended to cover card packs, prize wheels, and other such mechanics.

The ESRB said in its announcement that this second move has been made primarily in response to feedback from players, not from parents.

"According to research, parents are far more concerned about their child's ability to spend real money in games than the fact that those in-game purchases may be randomized," the group said.
Click to expand...

guest · Jun 13, 2020

Apple sued for allowing loot boxes in App Store
June 13, 2020
https://appleinsider.com/articles/2...-allowing-apps-with-loot-boxes-onto-app-store

Apple on Friday was hit with a proposed class action lawsuit targeting loot boxes in games and apps, a mechanism typically characterized by in-app purchases that present buyers with randomized digital rewards.

A complaint filed with the U.S. District Court for the Northern District of California alleges Apple is complicit in promoting gambling and addictive behavior by allowing developers to market apps and games with loot boxes on the App Store.

"Not unlike Big Tobacco's Joe Camel' advertising campaign, Apple relies on creating addictive behaviors in kids to generate huge profits for the Company," the complaint reads. "Over the last four years Defendant's App Store games have brought in billions of dollars, even though the vast majority of the games are free to download."
Click to expand...

Loot boxes are broadly defined as in-app purchases that grant users rewards, boosts, costumes, skins, weapons, or other special items.
Apple is being targeted by the complaint because it profits from in-app purchases.

Apple is also dinged for not explicitly noting the inclusion of loot boxes in App Store descriptions and allowing developers to age rate their own products.

"Thus, there is no notice - and no requirement of any notice by Apple - to the parent or the child that a game contains Loot Boxes or other gambling mechanisms," the complaint reads.
Click to expand...

Log in or Sign up

FTC promises to investigate loot boxes

ronjor Global Moderator

guest Guest

guest Guest

guest Guest

guest Guest

guest Guest

ronjor Global Moderator

ronjor Global Moderator

guest Guest

guest Guest

guest Guest

guest Guest

hawki Registered Member

guest Guest

guest Guest

guest Guest

ronjor Global Moderator

guest Guest

guest Guest

guest Guest

guest Guest

guest Guest

guest Guest

guest Guest

guest Guest

Log in or Sign up

FTC promises to investigate loot boxes

ronjor Global Moderator

guest Guest

guest Guest

guest Guest

guest Guest

guest Guest

ronjor Global Moderator

ronjor Global Moderator

guest Guest

guest Guest

guest Guest

guest Guest

hawki Registered Member

guest Guest

guest Guest

guest Guest

ronjor Global Moderator

guest Guest

guest Guest

guest Guest

guest Guest

guest Guest

guest Guest

guest Guest

guest Guest

Useful Searches