Federal Trade Commission Pledges to Investigate Video Game Loot Boxes

The United States Federal Trade Commision (FTC) has recently announced their plan to investigate the concept of loot boxes in video games. Namely, the susceptibility to gambling and addition to young children.

According to a report by Broadcasting Cable, FTC Chairman Joseph Simons pledged to investigate the matter when in discussions with Congress over the Cambridge Analytica data-leak and the FTC's observations od Facebook and Google. It was mentioned during a segment focused on manipulative marketing inside of children's content. This topic covered Google, YouTube, and the titular topic of video game loot boxes.

Similar courses of action have taken place in other countries, such as Belgium and the United Kingdom. The former is taking action against loot boxes under anti-gambling laws, fighting mainly against EA for their refusal to comply. The latter stated recently that they find no association between loot boxes and gambling.

This statement prompted the Entertainment Software Association to give their input on the position.

"Loot boxes are one way that players can enhance the experience that video games offer. Contrary to assertions, loot boxes are not gambling. They have no real-world value, players always receive something that enhances their experience, and they are entirely optional to purchase. They can enhance the experience for those who choose to use them, but have no impact on those who do not."

The idea of "you always get something" has been one of the most driving forces behind the argument that loot boxes are not gambling. While those against loot boxes have argued that the randomized chances of getting rewards of different values have the same mental impact as gambling.

Estimations say that at the current rate, loot boxes will generate $50 billion of revenue by 2020. With potential profits like this, it makes sense that corporations would want to protect their freedom to sell them with no restriction, including to children.