Loot Boxes concerning, but regulation a step too far, FTC group says

The gambling industry has received plenty of scrutiny over whether it’s too easy for children to participate in the action. Meanwhile, loot boxes have offered what basically equates to a gambling experience to anyone who can hold a controller, but has gone ahead with far less regulation. A new Federal Trade Commission (FTC) workshop report has been published, taking a look at the key concerns loot boxes raise.

Named ‘Inside the Game’, this workshop analyzed the consumer protection issues that loot boxes create. The workgroup came away with six specific concerns.

The concerns, as outlined by the report, are that loot boxes may have mechanics that are either confusing or manipulative, create a pressure on consumers to spend, fail to disclose their odds, create confusion specifically around how much a loot box costs, encourage adoption from influencers who aren’t liable to FTC guidelines, and specifically create risks for children.

Unfortunately, the report doesn’t do very much to propose solutions with teeth to them. Due to mixed views of the panelists on regulatory approaches, the primary ways they advocate loot boxes should be curbed involve self-regulation. They suggest new Entertainment Software Rating Board (ESRB) initiatives to disclose if a game offers loot boxes, and better educational tools and disclosures to keep consumers informed of what they’re getting into.