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                            <title><![CDATA[ Latest from Next TV in In-app-purchases ]]></title>
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                                                            <title><![CDATA[ FTC Preps Video Game 'Loot Box' Workshop ]]></title>
                                                                                                                                                                                                <link>https://www.nexttv.com/news/ftc-preps-video-game-loot-box-workshop</link>
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                            <![CDATA[ FTC Preps Video Game 'Loot Box' Workshop ]]>
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                                                                        <pubDate>Tue, 30 Jul 2019 15:15:01 +0000</pubDate>                                                                                                                                                                                                                                <category><![CDATA[Policy]]></category>
                                                                                                <author><![CDATA[ john.eggerton@futurenet.com (John Eggerton) ]]></author>                    <dc:creator><![CDATA[ John Eggerton ]]></dc:creator>                                                                                    <dc:source><![CDATA[ http://cdn.mos.cms.futurecdn.net/ETjt8sjZcQr97v7yakQ4hP.jpg ]]></dc:source>
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                                <p>The FTC has set its final agenda for an Aug. 7 workshop, on video game "loot boxes" and consumer protection. </p><figure class="van-image-figure pull-" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' ><p class="vanilla-image-block" style="padding-top:56.25%;"><img id="3xqVnEQd8PUkHwiaQVK7CB" name="" alt="" src="https://cdn.mos.cms.futurecdn.net/3xqVnEQd8PUkHwiaQVK7CB.png" mos="https://cdn.mos.cms.futurecdn.net/3xqVnEQd8PUkHwiaQVK7CB.png" align="" fullscreen="" width="" height="" attribution="" endorsement="" class="pull-"></p></div></div></figure><p>Loot boxes are "in-game rewards that contain a random assortment of virtual items (“loot”) to assist a player in advancing in the online game or to customize his or her game avatar." They are paid for by virtual currency that are either earned in a game or paid for with real money. </p><p>They are both a growing revenue stream and a growing concern over whether kids--and adults--are getting addicted to such purchases.  </p><p>Related: Hawley Bill Takes Aim at Social Media Addiction </p><p>NPR <a href="https://www.npr.org/2019/07/16/742302913/game-mode-loot-boxes-the-law-and-the-music-behind-the-game">recently aired a story</a> on the pros and cons of loot boxes, the cons being some people who spent thousands of dollars on in-app game purchased without realizing they were running up some totals, the pros including that it was a way for developers to monetize games whose initial price was low or free.  </p><p>The commission is looking broadly at in-game purchases and the impact of virtual rewards on consumer behavior. </p><p>Panels for “Inside the Game: Unlocking the Consumer Issues Surrounding Loot Boxes,” will deal with the impact on various video game monetization models on users, the social and psychological motivations with in-game spending, and initiatives for disclosing microtransactions and other consumer protection models. </p><p>Andrew Smith, director of the FTC’s Bureau of Consumer Protection, will provide opening remarks at the day-long workshop. </p>
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