[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4685 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 4685

To require the Government Accountability Office to carry out a study on 
the impact of the gamification, psychological nudges, and other design 
  techniques used by online trading platforms, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 26, 2021

Mr. Casten (for himself and Mr. Foster) introduced the following bill; 
       which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To require the Government Accountability Office to carry out a study on 
the impact of the gamification, psychological nudges, and other design 
  techniques used by online trading platforms, 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. GAO STUDY ON THE GAMIFICATION OF INVESTING.

    (a) Study.--The Comptroller General of the United States shall 
carry out a study on the impact of the gamification, psychological 
nudges, and other design techniques of online trading platforms, 
including the following:
            (1) How, and to what extent gamification, psychological 
        nudges, and other design techniques are being used by online 
        platforms in ways that are detrimental to investors.
            (2) How, and to what extent gamification, psychological 
        nudges, and other design techniques are being used by online 
        platforms in ways that empower, inform, and educate investors.
            (3) The various ways brokers use gamification, 
        psychological nudges, and other design techniques in marketing 
        strategies that target or include retail customers.
            (4) The various ways investment advisers, ``robo-
        advisers'', or financial planners use gamification, 
        psychological nudges, and other design techniques in marketing 
        strategies that target or include retail customers.
            (5) The various ways in which brokers, investment adviser, 
        ``robo-advisers'', or financial planners incorporate ``game-
        like'' features and designs in their online trading 
        applications used by retail customers.
            (6) Whether certain platform use of gamification, 
        psychological nudges, and other design techniques, including 
        ``game-like'' features, may constitute investment advice or 
        recommendations under Federal securities laws and regulations, 
        including Regulation Best Interest (17 C.F.R. 240.15l-1).
            (7) A comparison between the investment activity, habits, 
        and risk tolerance of--
                    (A) retail customers of firms that use 
                gamification, psychological nudges, and other design 
                techniques in marketing, or that incorporate ``game-
                like'' features and designs in their online trading 
                applications; and
                    (B) retail customers of firms that do not use, or 
                have limited use of, gamification, psychological 
                nudges, and other design techniques in marketing and 
                that do not incorporate ``game-like'' features and 
                designs in their online trading applications.
            (8) How, and how prominently, brokers, investment advisers, 
        ``robo-advisers'', or financial planners that use gamification, 
        psychological nudges, and other design techniques in marketing 
        strategies that target or include retail investors, or that 
        incorporate ``game-like'' features and designs in their online 
        trading applications, are disclosing the risks associated with 
        leverage, complex products, or excessive or frequent trading.
            (9) The average customer demographic (including age and 
        investment experience) of brokers, investment advisers, ``robo-
        advisers'', or financial planners that use gamification, 
        psychological nudges, and other design techniques in marketing 
        strategies that target or include retail investors, or that 
        incorporate ``game-like'' features and designs in their online 
        trading applications.
            (10) The relationship between (and any correlation between) 
        zero commission trading and gamification or investor 
        susceptibility to ``game-like'' features.
            (11) The degree to which the types of retail trading 
        activity that is incentivized by gamification (including the 
        specific asset classes promoted via gamification) benefits, 
        harms, or otherwise affects other market participants, and an 
        analysis thereof.
            (12) The degree to which Securities and Exchange 
        Commission's Form BD and Form ADV can be revised to help the 
        Commission better identify which registered firms use 
        gamification, psychological nudges, and other design 
        techniques.
            (13) Any data or legal challenges (e.g., so-called 
        proprietary practices) that the Comptroller General encounters 
        in preparing the report.
    (b) Investor Testing Authority.--The Investor Advocate of the 
Securities and Exchange Commission is authorized to carry out investor 
testing as part of the study required under subsection (a).
    (c) GAO Report.--Not later than the end of the 270-day period 
beginning on the date of enactment of this Act, the Comptroller General 
shall issue a report to the Securities and Exchange Commission and the 
Congress containing all findings and determinations made in carrying 
out the study required under subsection (a).
    (d) Required Consultation.--In carrying out the study required 
under subsection (a), the Comptroller General shall actively consult 
with--
            (1) the Securities and Exchange Commission;
            (2) the Investor Advocate of the Commission;
            (3) the Office of Investor Education and Advocacy of the 
        Commission;
            (4) the North American Securities Administrators 
        Association;
            (5) the Financial Industry Regulatory Authority;
            (6) academics; and
            (7) investor advocacy organizations and experts.
    (e) Gamification Defined.--In this section, the term 
``gamification'' means tactics or strategies used to engage customers 
and incentivize or nudge them to transact and spend time on an 
investment platform, including increased use of notifications, prizes, 
use of ladders and leader boards, psychological tools, and design 
elements to incentivize customers to spend more time on an investment 
platform, to increase rapid trading, and to increase the number of 
trades.
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