,,ii #aafth ,,congress #ast ,session ,s4 #afbi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #bc 7legislative day1 ,may #bb71 #bjai,mr4 ,hawley 7for himself1 ,mr4 ,blumenthal1 and ,mr4 ,markey7 introduced the following bill2 which was read twice and referred to the ,committee on ,commerce1 ,science1 and ,transportation ,a ,,bill ,to regulate certain pay-to-win microtransactions and sales of loot boxes in interactive digital entertainment products1 and for other purposes4 #a4 ,regulation of pay-to-win microtransactions and sales of loot boxes in video games 7a7 ,prohibition of pay-to-,win microtransactions and sales of loot boxes in minor-,oriented games 7#a7 ,game publishers ,it is unlawful for a game publisher to publish-- 7,a7 a minor-oriented game that includes pay-to-win microtransactions or loot boxes2 or 7,b7 an update to an existing minor-oriented game that would enable pay-to-win microtransactions or loot boxes in such game4 7#b7 ,digital game distributors ,it is unlawful for a digital game distributor to distribute-- 7,a7 a minor-oriented game that includes pay-to-win microtransactions or loot boxes2 or 7,b7 an update to an existing minor-oriented game that would enable pay-to-win microtransactions or loot boxes in such game4 7b7 ,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 #ah 7#a7 ,game publishers ,it is unlawful for a game publisher to publish an interactive digital entertainment product that is not a minor-oriented game 7or an update to such a product7 if-- 7,a7 such product or update contains pay-to-win microtransactions or loot boxes2 and 7,b7 the publisher has constructive knowledge that any of its users are under the age of #ah4 7#b7 ,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 7or an update to such a product7 if-- 7,a7 such product or update contains pay-to-win microtransactions or loot boxes2 and 7,b7 the distributor has constructive knowledge that any of its users are under the age of #ah4 #b4 ,definitions ,in this ,act3 7#a7 ,commission ,the term ,commission means the ,federal ,trade ,commission4 7#b7 ,interactive digital entertainment product 7,a7 ,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 user4 7,b7 ,exclusion ,such term shall not include a program if-- 7i7 a user's interaction with the program is limited to selecting options from a menu of choices2 and 7ii7 the program would not be considered a game by a reasonable user4 7#c7 ,digital game distributor ,the term digital game distributor means a person that1 for commercial purposes1 in interstate or foreign commerce1 distributes an interactive digital entertainment product over an online platform to over #a1jjj users annually4 7#d7 ,game publisher ,the term game publisher means a person that1 for commercial purposes1 in interstate or foreign commerce1 develops or finances the development of an interactive digital entertainment product that is distributed to over #a1jjj users annually4 7#e7 ,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 #ah1 as may be demonstrated by-- 7,a7 the subject matter of the product2 7,b7 the visual content of the product2 7,c7 the music or audio content of the product2 7,d7 the use of animated characters or activities that appeal to individuals under the age of #ah2 7,e7 the age of the characters or models in the product2 7,f7 the presence in the product of-- 7i7 celebrities who are under the age of #ah2 or 7ii7 celebrities who appeal to individuals under the age of #ah2 7,g7 the language used in the product2 7,h7 the content of materials used to advertise the product and the platforms on which such materials appear2 7,i7 the content of any advertising materials that appear in the product2 7,j7 other reliable empirical evidence relating to-- 7i7 the composition of the audience of the product2 or 7ii7 the audience of the product1 as intended by the publisher or distributor of the product2 or 7,k7 other evidence demonstrating that the product is targeted at individuals under the age of #ah4 7#f7 ,add-on transaction 7,a7 ,in general ,the term add-on transaction means1 with respect to an interactive digital entertainment product1 a payment to the game publisher of an interactive digital entertainment product1 an affiliate of the publisher1 or any other person who accepts such payment for the benefit of the publisher1 of either money or an in-game proxy for money1 such as a virtual currency1 that can be purchased with money1 that-- 7i7 unlocks a feature of the product2 or 7ii7 adds to or enhances the entertainment value of the product4 7,b7 ,exclusion ,such a term shall not include a payment 7including a payment of a regular subscription fee7 which is made only to allow a user to access the content of an interactive digital entertainment product1 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 product4 7#g7 ,pay-to-win microtransaction 7,a7 ,in general ,the term pay-to-win microtransaction means an add-on transaction to a interactive digital entertainment product that-- 7i7 with respect to an interactive digital entertainment product that1 from the perspective of a reasonable user of the product1 is a game offering a scoring system1 a set of goals to achieve1 a set of rewards1 or a sense of interactive progression through the product's content including but not limited to narrative progression-- 7,i7 eases a user's progression through content otherwise available within the game without the purchase of such transaction2 7,,ii7 assists a user in accomplishing an achievement within the game that can otherwise be accomplished without the purchase of such transaction2 7,,iii7 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 transaction2 or 7,,iv7 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 attempts2 or 7ii7 with respect to an interactive digital entertainment product that1 from the perspective of a reasonable user of the product1 is a game featuring competition with other users1 provides a user with a competitive advantage with respect to the game's competitive aspects over users who do not make such a transaction4 7,b7 ,exclusions 7i7 ,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 7as perceived by a reasonable user74 7ii7 ,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 not1 from the perspective of a reasonable user1 provide the user with a competitive advantage over other users who do not make such transaction4 7iii7 ,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 transaction1 from the perspective of a reasonable user1 is not that it-- 7,i7 eases a user's progression through content otherwise available within the product without the purchase of such transaction2 7,,ii7 assists a user in accomplishing an achievement within the product that can otherwise be accomplished without the purchase of such transaction2 7,,iii7 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 transaction2 7,,iv7 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 attempts2 or 7,v7 provides a competitive advantage over other users with respect to a product's competitive aspects4 7#h7 ,loot box ,the term loot box means an add-on transaction to an interactive digital entertainment product that-- 7,a7 in a randomized or partially randomized fashion-- 7i7 unlocks a feature of the product2 or 7ii7 adds to or enhances the entertainment value of the product2 or 7,b7 allows the user to make #a or more additional add-on transactions-- 7i7 that the user could not have made without making the first add-on transaction2 and 7ii7 the content of which is unknown to the user until after the user has made the first add-on transaction4 #c4 ,enforcement and applicability 7a7 ,enforcement by the ,commission 7#a7 ,in general ,except as otherwise provided1 this ,act shall be enforced by the ,commission under the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq474 7#b7 ,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 #ah7;a77#a77;,b7 of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #eg;a7a77#a77;,b774 7#c7 ,actions by the ,commission 7,a7 ,in general ,except as provided in subsection 7c77#a71 the ,commission shall prevent any person from violating this ,act in the same manner1 by the same means1 and with the same jurisdiction1 powers1 and duties as though all applicable terms and provisions of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 were incorporated into and made a part of this ,act1 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 ,act4 7,b7 ,violations 7i7 ,in general ,in an action brought by the ,commission to enforce this ,act1 each pay-to-win microtransaction or loot box sold to a user who is under the age of #ah through an interactive digital entertainment product that does not meet a requirement of this ,act shall be treated as a separate violation4 7ii7 ,civil penalty ,notwithstanding section #e7m7 of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #de7m771 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 ,act4 7iii7 ,first violations ,in an action brought by the ,commission to enforce this ,act1 the ,commission may seek a civil penalty for any violation of this ,act1 including any violation that is the first violation of this ,act that a person against whom the action is brought has committed4 7b7 ,enforcement by ,state attorneys general 7#a7 ,in general 7,a7 ,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 ,act1 the ,state1 as parens patriae1 may bring a civil action on behalf of the residents of the ,state in an appropriate ,state court to-- 7i7 enjoin that practice2 7ii7 enforce compliance with this ,act2 7iii7 obtain damages1 restitution1 or other compensation on behalf of residents of the ,state2 or 7iv7 obtain such other relief as the court may consider to be appropriate4 7,b7 ,notice 7i7 ,in general ,before filing an action under subparagraph 7,a71 the attorney general of the ,state involved shall provide to the ,commission-- 7,i7 written notice of that action2 and 7,,ii7 a copy of the complaint for that action4 7ii7 ,exemption 7,i7 ,in general ,clause 7i7 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 action4 7,,ii7 ,notification ,in an action described in subclause 7,i71 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 action4 7#b7 ,intervention 7,a7 ,in general ,on receiving notice under paragraph 7#a77;,b71 the ,commission shall have the right to intervene in the action that is the subject of the notice4 7,b7 ,effect of intervention ,if the ,commission intervenes in an action under paragraph 7#a71 it shall have the right-- 7i7 to be heard with respect to any matter that arises in that action2 and 7ii7 to file a petition for appeal4 7#c7 ,construction ,for purposes of bringing any civil action under paragraph 7#a71 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-- 7,a7 conduct investigations2 7,b7 administer oaths or affirmations2 or 7,c7 compel the attendance of witnesses or the production of documentary and other evidence4 7#d7 ,actions by the ,commission ,in any case in which an action is instituted by or on behalf of the ,commission for violation of this ,act1 no ,state may1 during the pendency of that action1 institute an action under paragraph 7#a7 against any defendant named in the complaint in the action instituted by or on behalf of the ,commission for that violation4 7#e7 ,venue2 service of process 7,a7 ,venue ,any action brought under paragraph 7#a7 may be brought in any ,state court of competent jurisdiction4 7,b7 ,service of process ,in an action brought under paragraph 7#a71 process may be served wherever the defendant-- 7i7 is an inhabitant2 or 7ii7 may be found4 #d4 ,study of compliance ,not later than #b years after the date of enactment of this ,act1 the ,commission shall submit to each committee of ,congress with jurisdiction over the ,commission a report on-- 7#a7 the actions taken by game publishers and digital game distributors to comply with this ,act2 and 7#b7 other ,federal or ,state laws relating to pay-to-win microtransactions and loot boxes4 #e4 ,study of the effect of pay-to-win microtransactions and loot boxes 7a7 ,in general ,not later than #b years after the date of enactment of this ,act1 the ,commission shall submit to each committee of ,congress with jurisdiction over the ,commission a report on the use of add-on content1 including pay-to-win microtransactions1 loot boxes1 and other kinds of add-on transactions in the design of interactive digital entertainment products for audiences of all ages4 7b7 ,content of report ,the report required under subsection 7a7 shall-- 7#a7 analyze the use of pay-to-win microtransaction and loot box design practices in specific interactive digital entertainment products2 7#b7 analyze the psychological effects of pay-to-win microtransactions and loot boxes on users2 7#c7 study game development practices relating to pay-to-win microtransactions and loot boxes1 including ,a_/,b testing of various pay-to-win microtransaction or loot box designs2 7#d7 analyze the effects of pay-to-win microtransactions and loot boxes on investment and production in the digital entertainment industry2 7#e7 document different types of pay-to-win microtransactions and loot boxes found in interactive digital entertainment products2 and 7#f7 analyze whether other forms of add-on transactions to interactive digital entertainment products1 such as those altering a user's visual representation within a product1 can induce compulsive purchasing behavior by minors4 7c7 ,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 7a74