FTC plans a 'public workshop' on loot boxes later this year

In February 2018, US senator Maggie Hassan called on the ESRB to take steps to reduce the prevalence of loot boxes in videogames, and warned that if it did not, the government step in. Later the same year, the Federal Trade Commission signaled its willingness to get involved in the matter. Now, according to Variety, the wheels have begun turning: A letter sent to Hassan by FTC chairman Joseph Simons said the commission is planning a "public workshop on loot boxes" later this year.   

Simons said in the letter that he shares Hassan's concerns about loot boxes, and while he can't comment on "nonpublic law enforcement efforts," he is able to provide insight into other possible avenues of action. 

"We are currently planning a public workshop on loot boxes for later this year as one non-law enforcement option. A workshop could provide a forum for stakeholders representing wide-ranging perspectives, including consumer advocacy organizations, parent groups, and industry members," Simons wrote. "It also could help elicit information to guide subsequent consumer outreach, which could include a consumer alert." 

Simons noted that the FTC has previously issued reports on the marketing of violent entertainment media to children, and said that as the videogame industry has evolved, "we have remained vigilant for potential consumer protection issues, and we have continued outreach efforts to self-regulatory bodies such as the Entertainment Software Rating Board." 

Pressure from government agencies in countries including Australia, Belgium, and the Netherlands have already led to significant changes to loot boxes, in some cases increased transparency, and in others their outright removal. But the debate persists: Regulatory bodies have so far been reluctant to define loot boxes as a form of gambling, and publishers remain committed to them.

The IGDA called for an industry-led effort to address loot box concerns late last year, warning that failure to do so risks government action that could "create significantly restrictive laws that could impact any random reward elements in games." We mulled over that possibly in late 2017, shortly after the Star Wars: Battlefront 2 beta lit the fuse on the current controversy. 

Hassan called the workshop "a step in the right direction," and encouraged the FTC to continue its efforts "to increase transparency and consumer protections around loot boxes." 

Andy Chalk
US News Lead

Andy has been gaming on PCs from the very beginning, starting as a youngster with text adventures and primitive action games on a cassette-based TRS80. From there he graduated to the glory days of Sierra Online adventures and Microprose sims, ran a local BBS, learned how to build PCs, and developed a longstanding love of RPGs, immersive sims, and shooters. He began writing videogame news in 2007 for The Escapist and somehow managed to avoid getting fired until 2014, when he joined the storied ranks of PC Gamer. He covers all aspects of the industry, from new game announcements and patch notes to legal disputes, Twitch beefs, esports, and Henry Cavill. Lots of Henry Cavill.

Latest in Gaming Industry
A still from a video announcement of Game Informer's return, featuring the magazine's Halo 2 issue.
Game Informer is back from the dead: 'The whole team has returned'
Typing on internet search toolbar: What am I doing?
How a Microsoft exec managed to pitch Microsoft Word through the genius tactic of being able to actually use it in a 'type-off' demanded by clients: 'I was the only one who'd actually been a secretary'
Half-Life wallpaper - Gordon Freeman
Former Valve exec says the company struggled to sell Half-Life until coming up with the ultimate 'one simple trick' of marketing manoeuvres: slapping a 'Game of the Year' sticker on the box
Gabe Newell looks into the camera, behind him is a prop of a turret from Team Fortress 2.
Gabe Newell's cult of personality is intense, but a Valve exec who worked with him says his superpower is how he 'delighted in people on the team just being really good at what they did'
The Spy from Team Fortress 2 holds up a folder with an accusatory expression.
One of Valve's original executives shares a very simple secret to its success: 'You can't use up your credibility' by trying to make bad games work
Gabe Newell in a Valve promotional video, on a yacht.
Gabe Newell had his eyes on a social network in the '90s that 'was not in a games context at all'—meaning Valve-owned social media could've been a very real thing
Latest in News
Assassin's Creed Shadows immersive mode - Naoe holding a tanto in her hand as two guards fall to the ground behind her.
Assassin's Creed Shadows' first hotfix addresses stability issues and a photo mode crash
A close-up of a scared young girl's face as she stumbles through the woods, a crown of twigs and flowers upon her head.
CD Projekt says it's not using generative AI on The Witcher 4 because it's 'quite tricky when it comes to legal IP ownership'
A plastic duck dressed like a circus weightlifter
The 5th highest-rated game on Steam in 2022 is back with a multiplayer sequel
A still from a video announcement of Game Informer's return, featuring the magazine's Halo 2 issue.
Game Informer is back from the dead: 'The whole team has returned'
An April Fool's Day Palworld game concept about dating Pals
From Palworld movies to Palworld TV shows: 'Everyone under the sun pitched us every idea you can imagine,' says Pocketpair's communications director
Ciri in The Witcher 4
The Witcher 4 won't be out until sometime in 2027 at the soonest, CD Projekt says