[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1629 Introduced in Senate (IS)]
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116th CONGRESS
1st Session
S. 1629
To regulate certain pay-to-win microtransactions and sales of loot
boxes in interactive digital entertainment products, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 23 (legislative day, May 22), 2019
Mr. Hawley (for himself, Mr. Blumenthal, and Mr. Markey) introduced the
following bill; which was read twice and referred to the Committee on
Commerce, Science, and Transportation
_______________________________________________________________________
A BILL
To regulate certain pay-to-win microtransactions and sales of loot
boxes in interactive digital entertainment products, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. REGULATION OF PAY-TO-WIN MICROTRANSACTIONS AND SALES OF LOOT
BOXES IN VIDEO GAMES.
(a) Prohibition of Pay-to-Win Microtransactions and Sales of Loot
Boxes in Minor-Oriented Games.--
(1) Game publishers.--It is unlawful for a game publisher
to publish--
(A) a minor-oriented game that includes pay-to-win
microtransactions or loot boxes; or
(B) an update to an existing minor-oriented game
that would enable pay-to-win microtransactions or loot
boxes in such game.
(2) Digital game distributors.--It is unlawful for a
digital game distributor to distribute--
(A) a minor-oriented game that includes pay-to-win
microtransactions or loot boxes; or
(B) an update to an existing minor-oriented game
that would enable pay-to-win microtransactions or loot
boxes in such game.
(b) Prohibition on Publication or Distribution of Video Games
Containing Pay-to-Win Microtransactions or Purchasing Loot Boxes Where
the Publisher or Distributor Has Constructive Knowledge That Any Users
Are Under Age 18.--
(1) Game publishers.--It is unlawful for a game publisher
to publish an interactive digital entertainment product that is
not a minor-oriented game (or an update to such a product) if--
(A) such product or update contains pay-to-win
microtransactions or loot boxes; and
(B) the publisher has constructive knowledge that
any of its users are under the age of 18.
(2) Digital game distributors.--It is unlawful for a
digital game distributor to distribute an interactive digital
entertainment product that is not a minor-oriented game (or an
update to such a product) if--
(A) such product or update contains pay-to-win
microtransactions or loot boxes; and
(B) the distributor has constructive knowledge that
any of its users are under the age of 18.
SEC. 2. DEFINITIONS.
In this Act:
(1) Commission.--The term ``Commission'' means the Federal
Trade Commission.
(2) Interactive digital entertainment product.--
(A) In general.--The term ``interactive digital
entertainment product'' means a program such as a video
game that is accessed by a connected device and
provides an interactive entertainment experience for
the user.
(B) Exclusion.--Such term shall not include a
program if--
(i) a user's interaction with the program
is limited to selecting options from a menu of
choices; and
(ii) the program would not be considered a
game by a reasonable user.
(3) Digital game distributor.--The term ``digital game
distributor'' means a person that, for commercial purposes, in
interstate or foreign commerce, distributes an interactive
digital entertainment product over an online platform to over
1,000 users annually.
(4) Game publisher.--The term ``game publisher'' means a
person that, for commercial purposes, in interstate or foreign
commerce, develops or finances the development of an
interactive digital entertainment product that is distributed
to over 1,000 users annually.
(5) Minor-oriented game.--The term ``minor-oriented video
game'' means an interactive digital entertainment product for
which the target audience is individuals under the age of 18,
as may be demonstrated by--
(A) the subject matter of the product;
(B) the visual content of the product;
(C) the music or audio content of the product;
(D) the use of animated characters or activities
that appeal to individuals under the age of 18;
(E) the age of the characters or models in the
product;
(F) the presence in the product of--
(i) celebrities who are under the age of
18; or
(ii) celebrities who appeal to individuals
under the age of 18;
(G) the language used in the product;
(H) the content of materials used to advertise the
product and the platforms on which such materials
appear;
(I) the content of any advertising materials that
appear in the product;
(J) other reliable empirical evidence relating to--
(i) the composition of the audience of the
product; or
(ii) the audience of the product, as
intended by the publisher or distributor of the
product; or
(K) other evidence demonstrating that the product
is targeted at individuals under the age of 18.
(6) Add-on transaction.--
(A) In general.--The term ``add-on transaction''
means, with respect to an interactive digital
entertainment product, a payment to the game publisher
of an interactive digital entertainment product, an
affiliate of the publisher, or any other person who
accepts such payment for the benefit of the publisher,
of either money or an in-game proxy for money, such as
a virtual currency, that can be purchased with money,
that--
(i) unlocks a feature of the product; or
(ii) adds to or enhances the entertainment
value of the product.
(B) Exclusion.--Such a term shall not include a
payment (including a payment of a regular subscription
fee) which is made only to allow a user to access the
content of an interactive digital entertainment
product, provided that users do not have the option to
pay different amounts to access the same content in
order to unlock a feature of the product or to enhance
the entertainment value of the product.
(7) Pay-to-win microtransaction.--
(A) In general.--The term ``pay-to-win
microtransaction'' means an add-on transaction to a
interactive digital entertainment product that--
(i) with respect to an interactive digital
entertainment product that, from the
perspective of a reasonable user of the
product, is a game offering a scoring system, a
set of goals to achieve, a set of rewards, or a
sense of interactive progression through the
product's content including but not limited to
narrative progression--
(I) eases a user's progression
through content otherwise available
within the game without the purchase of
such transaction;
(II) assists a user in
accomplishing an achievement within the
game that can otherwise be accomplished
without the purchase of such
transaction;
(III) assists a user in receiving
an award associated with the game that
is otherwise available in association
with the game without the purchase of
such transaction; or
(IV) permits a user to continue to
access content of the game that had
previously been accessible to the user
but has been made inaccessible after
the expiration of a timer or a number
of gameplay attempts; or
(ii) with respect to an interactive digital
entertainment product that, from the
perspective of a reasonable user of the
product, is a game featuring competition with
other users, provides a user with a competitive
advantage with respect to the game's
competitive aspects over users who do not make
such a transaction.
(B) Exclusions.--
(i) Difficulty modes.--Such term shall not
include an add-on transaction to an interactive
digital entertainment product that provides the
user with access to a new mode of play that
makes progression through the content of the
product more difficult than it would be without
the transaction (as perceived by a reasonable
user).
(ii) Cosmetic alterations.--Such term shall
not include an add-on transaction to an
interactive digital entertainment product whose
only effect is to alter a user's visual
representation within the game provided that it
does not, from the perspective of a reasonable
user, provide the user with a competitive
advantage over other users who do not make such
transaction.
(iii) Additional game content.--Such term
shall not include an add-on transaction to an
interactive digital entertainment product that
adds new content to the product provided that
the add-on transaction can be purchased only
once by a user and the perceived value offered
by such transaction, from the perspective of a
reasonable user, is not that it--
(I) eases a user's progression
through content otherwise available
within the product without the purchase
of such transaction;
(II) assists a user in
accomplishing an achievement within the
product that can otherwise be
accomplished without the purchase of
such transaction;
(III) assists a user in receiving
an award associated with the product
that is otherwise available in
association with the product without
the purchase of such transaction;
(IV) permits a user to continue to
access content of the product that had
previously been accessible to the user
but is made inaccessible after the
expiration of a timer or a number of
gameplay attempts; or
(V) provides a competitive
advantage over other users with respect
to a product's competitive aspects.
(8) Loot box.--The term ``loot box'' means an add-on
transaction to an interactive digital entertainment product
that--
(A) in a randomized or partially randomized
fashion--
(i) unlocks a feature of the product; or
(ii) adds to or enhances the entertainment
value of the product; or
(B) allows the user to make 1 or more additional
add-on transactions--
(i) that the user could not have made
without making the first add-on transaction;
and
(ii) the content of which is unknown to the
user until after the user has made the first
add-on transaction.
SEC. 3. ENFORCEMENT AND APPLICABILITY.
(a) Enforcement by the Commission.--
(1) In general.--Except as otherwise provided, this Act
shall be enforced by the Commission under the Federal Trade
Commission Act (15 U.S.C. 41 et seq.).
(2) Unfair or deceptive acts or practices.--A violation of
this Act shall be treated as a violation of a rule defining an
unfair or deceptive act or practice prescribed under section
18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C.
57a(a)(1)(B)).
(3) Actions by the commission.--
(A) In general.--Except as provided in subsection
(c)(1), the Commission shall prevent any person from
violating this Act in the same manner, by the same
means, and with the same jurisdiction, powers, and
duties as though all applicable terms and provisions of
the Federal Trade Commission Act (15 U.S.C. 41 et seq.)
were incorporated into and made a part of this Act, and
any person who violates this Act shall be subject to
the penalties and entitled to the privileges and
immunities provided in the Federal Trade Commission
Act.
(B) Violations.--
(i) In general.--In an action brought by
the Commission to enforce this Act, each pay-
to-win microtransaction or loot box sold to a
user who is under the age of 18 through an
interactive digital entertainment product that
does not meet a requirement of this Act shall
be treated as a separate violation.
(ii) Civil penalty.--Notwithstanding
section 5(m) of the Federal Trade Commission
Act (15 U.S.C. 45(m)), a civil penalty
recovered for a violation of this Act may be in
excess of the amounts provided for in that
section as the court finds appropriate to deter
violations of this Act.
(iii) First violations.--In an action
brought by the Commission to enforce this Act,
the Commission may seek a civil penalty for any
violation of this Act, including any violation
that is the first violation of this Act that a
person against whom the action is brought has
committed.
(b) Enforcement by State Attorneys General.--
(1) In general.--
(A) Civil actions.--In any case in which the
attorney general of a State has reason to believe that
an interest of the residents of that State has been or
is threatened or adversely affected by the engagement
of any person in a practice that violates this Act, the
State, as parens patriae, may bring a civil action on
behalf of the residents of the State in an appropriate
State court to--
(i) enjoin that practice;
(ii) enforce compliance with this Act;
(iii) obtain damages, restitution, or other
compensation on behalf of residents of the
State; or
(iv) obtain such other relief as the court
may consider to be appropriate.
(B) Notice.--
(i) In general.--Before filing an action
under subparagraph (A), the attorney general of
the State involved shall provide to the
Commission--
(I) written notice of that action;
and
(II) a copy of the complaint for
that action.
(ii) Exemption.--
(I) In general.--Clause (i) shall
not apply with respect to the filing of
an action by an attorney general of a
State under this paragraph if the
attorney general of the State
determines that it is not feasible to
provide the notice described in that
clause before the filing of the action.
(II) Notification.--In an action
described in subclause (I), the
attorney general of a State shall
provide notice and a copy of the
complaint to the Commission at the same
time as the attorney general files the
action.
(2) Intervention.--
(A) In general.--On receiving notice under
paragraph (1)(B), the Commission shall have the right
to intervene in the action that is the subject of the
notice.
(B) Effect of intervention.--If the Commission
intervenes in an action under paragraph (1), it shall
have the right--
(i) to be heard with respect to any matter
that arises in that action; and
(ii) to file a petition for appeal.
(3) Construction.--For purposes of bringing any civil
action under paragraph (1), nothing in this Act shall be
construed to prevent an attorney general of a State from
exercising the powers conferred on the attorney general by the
laws of that State to--
(A) conduct investigations;
(B) administer oaths or affirmations; or
(C) compel the attendance of witnesses or the
production of documentary and other evidence.
(4) Actions by the commission.--In any case in which an
action is instituted by or on behalf of the Commission for
violation of this Act, no State may, during the pendency of
that action, institute an action under paragraph (1) against
any defendant named in the complaint in the action instituted
by or on behalf of the Commission for that violation.
(5) Venue; service of process.--
(A) Venue.--Any action brought under paragraph (1)
may be brought in any State court of competent
jurisdiction.
(B) Service of process.--In an action brought under
paragraph (1), process may be served wherever the
defendant--
(i) is an inhabitant; or
(ii) may be found.
SEC. 4. STUDY OF COMPLIANCE.
Not later than 2 years after the date of enactment of this Act, the
Commission shall submit to each committee of Congress with jurisdiction
over the Commission a report on--
(1) the actions taken by game publishers and digital game
distributors to comply with this Act; and
(2) other Federal or State laws relating to pay-to-win
microtransactions and loot boxes.
SEC. 5. STUDY OF THE EFFECT OF PAY-TO-WIN MICROTRANSACTIONS AND LOOT
BOXES.
(a) In General.--Not later than 2 years after the date of enactment
of this Act, the Commission shall submit to each committee of Congress
with jurisdiction over the Commission a report on the use of add-on
content, including pay-to-win microtransactions, loot boxes, and other
kinds of add-on transactions in the design of interactive digital
entertainment products for audiences of all ages.
(b) Content of Report.--The report required under subsection (a)
shall--
(1) analyze the use of pay-to-win microtransaction and loot
box design practices in specific interactive digital
entertainment products;
(2) analyze the psychological effects of pay-to-win
microtransactions and loot boxes on users;
(3) study game development practices relating to pay-to-win
microtransactions and loot boxes, including A/B testing of
various pay-to-win microtransaction or loot box designs;
(4) analyze the effects of pay-to-win microtransactions and
loot boxes on investment and production in the digital
entertainment industry;
(5) document different types of pay-to-win
microtransactions and loot boxes found in interactive digital
entertainment products; and
(6) analyze whether other forms of add-on transactions to
interactive digital entertainment products, such as those
altering a user's visual representation within a product, can
induce compulsive purchasing behavior by minors.
(c) Use of Psychological Research.--The Commission may conduct or
commission psychological research on users of interactive digital
entertainment products to inform the report required under subsection
(a).
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