Sen. Josh Hawley of Missouri plans to introduce a bill that would ban microtransactions in games marketed to kids. The Protecting Children from Abusive Games Act would prevent the sale of "loot boxes," which contain a random collection of items, and "pay to win" models in those games. Hawley, who has also criticized social-media platforms, says the microtransactions are designed to profit from addictive and compulsive behaviors. Visit Business Insider's homepage for more stories. Government officials want to crack down on an increasingly common feature of video games: "loot boxes." Sen. Josh Hawley of Missouri plans to introduce a bill that would ban loot boxes — a random collection of items that players can buy in a game — and other types of microtransactions in video games marketed to children. The Washington Post reported on Wednesday that Hawley's bill, called the Protecting Children from Abusive Games Act, would affect games designed for children, as well as mature games with players under the age of 18, like "Mortal Kombat" or "Call of Duty." Microtransactions have become a major part of the video game industry and make up the business model of many popular games — for example, "Fortnite" is available for free but generated more than $2 billion last year from microtransactions. Other games with some version of microtransactions include "FIFA 19," "Apex Legends," "Overwatch," "PlayerUnknown's Battlegrounds," and "NBA 2K19." But what exactly is the difference between a loot box and a microtransaction? Here's a look at why the controversial game-payment features are raising the ire of lawmakers, and a breakdown of everything you need to know about loot boxes.<doc-sep>Senator Josh Hawley (R-Mo.) today announced plans to introduce "The Protecting Children from Abusive Games Act," which would target "the exploitation of children through 'pay-to-win' and 'loot box' monetization practices by the video game industry," according to a summary released by Hawley's office. As outlined, the bill would mirror the Children's Online Privacy Protection Act in applying to games "targeted at those under the age of 18" and "games with wider audiences whose developers knowingly allow minor players to engage in microtransactions." Under the bill, such games would not be allowed to have loot boxes, defined here as "microtransactions offering randomized or partially randomized rewards to players." The bill summary also takes aim at so-called "pay-to-win" mechanics that "manipulate a game's progression system... to induce players to spend money..." or which alter the "competitive balance between players of multiplayer games." The Federal Trade Commission and state attorneys general would be able to enforce the law. "When a game is designed for kids, game developers shouldn’t be allowed to monetize addiction," Hawley said in a statement. "And when kids play games designed for adults, they should be walled off from compulsive microtransactions. Game developers who knowingly exploit children should face legal consequences." In a statement, the ESA noted that "numerous countries, including Ireland, Germany, Sweden, Denmark, Australia, New Zealand, and the United Kingdom, determined that loot boxes do not constitute gambling. We look forward to sharing with the senator the tools and information the industry already provides that keeps the control of in-game spending in parents’ hands. Parents already have the ability to limit or prohibit in-game purchases with easy to use parental controls." Advertisement Hawley's declaration is the most serious sign of federal action on randomized loot boxes since they became a somewhat notable political issue in late 2017 . Senator Maggie Hassan (D-N.H.) called for an industry review of loot box practices over a year ago but stopped short of introducing any legislation. Hassan also took the issue up with the FTC, which announced in February that it would convene a public workshop on the issue later this year. Despite Hawley's announcement, though, the Protecting Children from Abusive Games Act still has a long way to go before becoming law. First, the summary announced today would have to be translated into actual legislative language. That bill would then have to proceed through committee (likely following hearings), then pass the House of Representatives and Senate before being signed by the president. None of that seems especially urgent or likely in the near term, given other political priorities and continuing gridlock in the legislature. State-based legislative efforts to rein in loot boxes in Washington state Hawaii , and Indiana have yet to lead to any actual laws on the books. And despite the ESA's citation of national governments that have explicitly okayed loot boxes, gaming commissions in the Netherlands and Belgium have already ruled that loot boxes constitute illegal games of chance. In September, Washington state joined with 15 foreign countries in a declaration expressing concern "with the risks being posed by the blurring of lines between gambling and other forms of digital entertainment such as video gaming." Listing image by ThinkGeek<doc-sep>
EA’s Star Wars Battlefront II became a focal point for the loot box controversy when it was released in 2017. Screenshot : EA Senator Josh Hawley (R-MO) today announced a bill that would ban loot boxes and pay-to-win microtransactions in “games played by minors,” a broad label that the senator says will include both games designed for kids under 18 and games “whose developers knowingly allow minor players to engage in microtransactions.” Hawley will introduce the bill, “The Protecting Children from Abusive Games Act,” to the U.S. Senate soon. In press materials announcing the bill, Hawley’s team brought up the Activision game Candy Crush as an egregious example of pay-to-win microtransactions thanks to its $150 “Luscious Bundle” that comes with a whole bunch of goodies. This bill will also likely apply to a host of online games that feature loot boxes and other ways in which players can spend money for real benefits. “When a game is designed for kids, game developers shouldn’t be allowed to monetize addiction,” Hawley said in a press release. “And when kids play games designed for adults, they should be walled off from compulsive microtransactions. Game developers who knowingly exploit children should face legal consequences.” Last fall, the Federal Trade Commission promised to investigate loot boxes following a letter from Senator Maggie Hassan (D-NH) that she wrote in the wake of 2017's string of games featuring the heavy usage of predatory microtransactions, such as Middle-earth: Shadow of War and Star Wars Battlefront II. Although some companies have pulled back on the practice, popular games like Overwatch, FIFA, and Apex Legends continue to make big money off randomized microtransactions. Many of those games are played by both adults and children. Hawley, 39, has become known in Washington for criticizing major tech companies Facebook and Google, often accusing them of anti-conservative bias. UPDATE (12:18pm): T he Entertainment Software Association, the video game industry lobbyist group, sent over a statement shortly after this bill was introduced: “Numerous countries, including Ireland, Germany, Sweden, Denmark, Australia, New Zealand, and the United Kingdom, determined that loot boxes do not constitute gambling. We look forward to sharing with the senator the tools and information the industry already provides that keeps the control of in-game spending in parents’ hands. Parents already have the ability to limit or prohibit in-game purchases with easy to use parental controls.”