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US politicians call on gaming companies to axe coercive spending

Building on legislation outlined by the UK, US Congress members are calling for developers to better protect young people from ‘predatory’ game mechanics like loot boxes.

In 2021, gaming is all about value for money.

Subscription services like Games Pass, PlayStation Now, and EA Play are popping with hundreds of AAA titles to get stuck into, yet somehow people are still coerced into forking out for microtransactions.

In a bid to protect children (and their parents’ bank accounts) from endless loot box purchases, the UK is set to enforce new digital guidelines called the ‘Age Appropriate Design Code.’

Rolling out next month, the new regulations are intended to keep children’s data safe on social networking sites like Instagram and Facebook while simultaneously phasing out nudge mechanics intended to encourage regular spending and gambling behaviours.

This law obviously doesn’t extend to children in the US, but politicians across the pond are keen to bring their own ‘Child Online Privacy Protection Act’ more in line with these values.

Letters penned by three members of US Congress have now reached a dozen major gaming companies including Blizzard, Epic Games, Microsoft, and Nintendo outlining their concerns over loopholes in the current system.

At its core, the letter asks executives what changes they plan to make following the UK – if any.

‘It is imperative that Congress acts with urgency to enact a strong privacy law for children and teens in the 21st century,’ the letter read.

‘As we work towards that goal, we urge you to extend to American children and teens any privacy enhancements that you implement to comply with the AADC.’

Chief among the concerns of both nations is the continued emphasis on pay-to-win mechanics and gambling behaviours within certain big-selling (often multiplayer heavy) franchises.

In the years since EA’s 2018 Battlefront II debacle – in which the company was slammed for a horrible multiplayer progression system overtly tied to loot boxes – attitudes have generally shifted to include more in-game incentives to unlock new content and level up.

US lawmakers argue that while this is largely true of the wider industry, ‘children are uniquely vulnerable to manipulation and peer pressure’ to keep spending money they don’t have.

Many of these games have seasonal rollouts with timed content available on their in-game marketplaces, and use nudge mechanics like menu pop ups to encourage spending before they expire.

One title explicitly guilty of such mechanics, FIFA 2021, returned a staggering $1.6bn from Ultimate Team packs alone last year and has amassed close to $6bn across all franchise entries since 2013. In that time, each FIFA game has dropped with a standard PEGI 3 age rating.

‘The prevalence of micro-transactions – often encouraged through nudging – have led to high credit card bills for parents,’ the US politicians wrote. ‘Loot boxes go one step further, encouraging purchase before a child knows what the “bundle” contains – akin to gambling.’

Adding to existing scrutiny about loot boxes and gambling mechanics within gaming, the letter also addresses the dangers young people potentially face through multiplayer interactions. Up to now, this has been deemed a real oversight.

The US already has legislation that protects children aged under 13 from the disclosure of personal information without parental consent, but there is a feeling in Congress that more needs to be done by big developers to safeguard young gamers throughout their adolescence.

Thanks to the UK upping the ante, there is now a desire to prohibit targeted in-game ads from reaching children at all, and to force companies to start designing their games with the best interests of young people in mind.

Boasting the title of the biggest industry in entertainment, gaming is ultra-focused on becoming as accessible as possible. Perhaps it’s about time it starts to prioritise generations who will sustain it for years to come.

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