Compliance Updates

FTC to investigate in-game loot boxes

Published

7 years ago

November 29, 2018

Niji Narayan

Reading Time: < 1 minute

The Federal Trade Commission (FTC) will investigate the loot boxes embedded with video games.

Maggie Hassan, New Hampshire Senator, requested the investigation early this year. FTC chairman Joe Simons told Hassan in a Senate Commerce subcommittee hearing that he would be looking into the matter in an official capacity.

“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,” the senator stated. She added that her concern had grown due to the fact that loot crates are on track to becoming a $50 billion a year industry—possibly citing a report from Juniper Research released in April.

“It’s time for the FTC to investigate these mechanisms to ensure that children are being adequately protected, and to educate parents about potential addiction and other negative impacts of these games,” said Hassan, who also pointed out that there is similar legislation in place Japan and the Netherlands.

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Niji Narayan

Niji Narayan has been in the writing industry for well over a decade or so. He prides himself as one of the few survivors left in the world who have actually mastered the impossible art of copy editing. Niji graduated in Physics and obtained his Master’s degree in Communication and Journalism. He has always interested in sports writing and travel writing. He has written for numerous websites and his in-depth analytical articles top sports magazines like Cricket Today and Sports Today. He reports gaming industry headlines from all around the globe.