,,ii #aaf? ,,congress #a/ ,session ,s4 #afbi ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,may #bc 7legislative day1 ,may #bb71 #bjai,mr4 ,hawley 7= himself1 ,mr4 ,blum5?al1 & ,mr4 ,m>key7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,comm]ce1 ,sci5ce1 & ,transportation ,a ,,bill ,to regulate c]ta9 pay-to-w9 microtransactions & sales ( loot boxes 9 int]active digital ent]ta9m5t products1 & = o!r purposes4 #a4 ,regulation ( pay-to-w9 microtransactions & sales ( loot boxes 9 video games 7a7 ,prohibition ( pay-to-,w9 microtransactions & sales ( loot boxes 9 m9or-,ori5t$ games 7#a7 ,game publi%]s ,x is unlawful = a game publi%] to publi%-- 7,a7 a m9or-ori5t$ game t includes pay-to-w9 microtransactions or loot boxes2 or 7,b7 an update to an exi/+ m9or-ori5t$ game t w\ld enable pay-to-w9 microtransactions or loot boxes 9 su* game4 7#b7 ,digital game di/ributors ,x is unlawful = a digital game di/ributor to di/ribute-- 7,a7 a m9or-ori5t$ game t includes pay-to-w9 microtransactions or loot boxes2 or 7,b7 an update to an exi/+ m9or-ori5t$ game t w\ld enable pay-to-w9 microtransactions or loot boxes 9 su* game4 7b7 ,prohibition on publication or di/ribution ( video games conta9+ pay-to-,w9 microtransactions or pur*as+ loot boxes :]e ! publi%] or di/ributor has con/ructive k t any us]s are "u age #ah 7#a7 ,game publi%]s ,x is unlawful = a game publi%] to publi% an int]active digital ent]ta9m5t product t is n a m9or-ori5t$ game 7or an update to su* a product7 if-- 7,a7 su* product or update conta9s pay-to-w9 microtransactions or loot boxes2 & 7,b7 ! publi%] has con/ructive k t any ( its us]s are "u ! age ( #ah4 7#b7 ,digital game di/ributors ,x is unlawful = a digital game di/ributor to di/ribute an int]active digital ent]ta9m5t product t is n a m9or-ori5t$ game 7or an update to su* a product7 if-- 7,a7 su* product or update conta9s pay-to-w9 microtransactions or loot boxes2 & 7,b7 ! di/ributor has con/ructive k t any ( its us]s are "u ! age ( #ah4 #b4 ,def9itions ,9 ?is ,act3 7#a7 ,commission ,! t]m ,commission means ! ,f$]al ,trade ,commission4 7#b7 ,int]active digital ent]ta9m5t product 7,a7 ,9 g5]al ,! t]m int]active digital ent]ta9m5t product means a program su* z a video game t is access$ by a connect$ device & provides an int]active ent]ta9m5t exp]i5ce = ! us]4 7,b7 ,exclusion ,su* t]m %all n include a program if-- 7i7 a us]'s int]action ) ! program is limit$ to select+ options f a m5u ( *oices2 & 7ii7 ! program w\ld n be consid]$ a game by a reasonable us]4 7#c7 ,digital game di/ributor ,! t]m digital game di/ributor means a p]son t1 = comm]cial purposes1 9 int]/ate or =eign comm]ce1 di/ributes an int]active digital ent]ta9m5t product ov] an onl9e plat=m to ov] #a1jjj us]s annually4 7#d7 ,game publi%] ,! t]m game publi%] means a p]son t1 = comm]cial purposes1 9 int]/ate or =eign comm]ce1 develops or f9ances ! developm5t ( an int]active digital ent]ta9m5t product t is di/ribut$ to ov] #a1jjj us]s annually4 7#e7 ,m9or-ori5t$ game ,! t]m m9or-ori5t$ video game means an int]active digital ent]ta9m5t product = :i* ! t>get audi5ce is individuals "u ! age ( #ah1 z may be demon/rat$ by-- 7,a7 ! subject matt] ( ! product2 7,b7 ! visual cont5t ( ! product2 7,c7 ! music or audio cont5t ( ! product2 7,d7 ! use ( animat$ *>act]s or activities t appeal to individuals "u ! age ( #ah2 7,e7 ! age ( ! *>act]s or models 9 ! product2 7,f7 ! pres5ce 9 ! product (-- 7i7 celebrities :o are "u ! age ( #ah2 or 7ii7 celebrities :o appeal to individuals "u ! age ( #ah2 7,g7 ! language us$ 9 ! product2 7,h7 ! cont5t ( mat]ials us$ to adv]tise ! product & ! plat=ms on :i* su* mat]ials appe>2 7,i7 ! cont5t ( any adv]tis+ mat]ials t appe> 9 ! product2 7,j7 o!r reliable empirical evid5ce relat+ to-- 7i7 ! composition ( ! audi5ce ( ! product2 or 7ii7 ! audi5ce ( ! product1 z int5d$ by ! publi%] or di/ributor ( ! product2 or 7,k7 o!r evid5ce demon/rat+ t ! product is t>get$ at individuals "u ! age ( #ah4 7#f7 ,add-on transaction 7,a7 ,9 g5]al ,! t]m add-on transaction means1 ) respect to an int]active digital ent]ta9m5t product1 a paym5t to ! game publi%] ( an int]active digital ent]ta9m5t product1 an affiliate ( ! publi%]1 or any o!r p]son :o accepts su* paym5t = ! b5efit ( ! publi%]1 ( ei!r money or an 9-game proxy = money1 su* z a virtual curr5cy1 t c be pur*as$ ) money1 t-- 7i7 unlocks a feature ( ! product2 or 7ii7 adds to or enhances ! ent]ta9m5t value ( ! product4 7,b7 ,exclusion ,su* a t]m %all n include a paym5t 7includ+ a paym5t ( a regul> subscription fee7 :i* is made only to all[ a us] to access ! cont5t ( an int]active digital ent]ta9m5t product1 provid$ t us]s d n h ! option to pay diff]5t am\nts to access ! same cont5t 9 ord] to unlock a feature ( ! product or to enhance ! ent]ta9m5t value ( ! product4 7#g7 ,pay-to-w9 microtransaction 7,a7 ,9 g5]al ,! t]m pay-to-w9 microtransaction means an add-on transaction to a int]active digital ent]ta9m5t product t-- 7i7 ) respect to an int]active digital ent]ta9m5t product t1 f ! p]spective ( a reasonable us] ( ! product1 is a game (f]+ a scor+ sy/em1 a set ( goals to a*ieve1 a set ( rew>ds1 or a s5se ( int]active progression ?r\gh ! product's cont5t includ+ b n limit$ to n>rative progression-- 7,i7 eases a us]'s progression ?r\gh cont5t o!rwise available )9 ! game )\t ! pur*ase ( su* transaction2 7,,ii7 assi/s a us] 9 accompli%+ an a*ievem5t )9 ! game t c o!rwise be accompli%$ )\t ! pur*ase ( su* transaction2 7,,iii7 assi/s a us] 9 receiv+ an aw>d associat$ ) ! game t is o!rwise available 9 association ) ! game )\t ! pur*ase ( su* transaction2 or 7,,iv7 p]mits a us] to cont9ue to access cont5t ( ! game t _h previ\sly be5 accessible to ! us] b has be5 made inaccessible aft] ! expiration ( a tim] or a numb] ( gameplay attempts2 or 7ii7 ) respect to an int]active digital ent]ta9m5t product t1 f ! p]spective ( a reasonable us] ( ! product1 is a game featur+ competition ) o!r us]s1 provides a us] ) a competitive advantage ) respect to ! game's competitive aspects ov] us]s :o d n make su* a transaction4 7,b7 ,exclusions 7i7 ,difficulty modes ,su* t]m %all n include an add-on transaction to an int]active digital ent]ta9m5t product t provides ! us] ) access to a new mode ( play t makes progression ?r\gh ! cont5t ( ! product m difficult ?an x w\ld be )\t ! transaction 7z p]ceiv$ by a reasonable us]74 7ii7 ,cosmetic alt]ations ,su* t]m %all n include an add-on transaction to an int]active digital ent]ta9m5t product ^: only effect is to alt] a us]'s visual repres5tation )9 ! game provid$ t x does n1 f ! p]spective ( a reasonable us]1 provide ! us] ) a competitive advantage ov] o!r us]s :o d n make su* transaction4 7iii7 ,additional game cont5t ,su* t]m %all n include an add-on transaction to an int]active digital ent]ta9m5t product t adds new cont5t to ! product provid$ t ! add-on transaction c be pur*as$ only once by a us] & ! p]ceiv$ value (f]$ by su* transaction1 f ! p]spective ( a reasonable us]1 is n t x-- 7,i7 eases a us]'s progression ?r\gh cont5t o!rwise available )9 ! product )\t ! pur*ase ( su* transaction2 7,,ii7 assi/s a us] 9 accompli%+ an a*ievem5t )9 ! product t c o!rwise be accompli%$ )\t ! pur*ase ( su* transaction2 7,,iii7 assi/s a us] 9 receiv+ an aw>d associat$ ) ! product t is o!rwise available 9 association ) ! product )\t ! pur*ase ( su* transaction2 7,,iv7 p]mits a us] to cont9ue to access cont5t ( ! product t _h previ\sly be5 accessible to ! us] b is made inaccessible aft] ! expiration ( a tim] or a numb] ( gameplay attempts2 or 7,v7 provides a competitive advantage ov] o!r us]s ) respect to a product's competitive aspects4 7#h7 ,loot box ,! t]m loot box means an add-on transaction to an int]active digital ent]ta9m5t product t-- 7,a7 9 a r&omiz$ or p>tially r&omiz$ fa%ion-- 7i7 unlocks a feature ( ! product2 or 7ii7 adds to or enhances ! ent]ta9m5t value ( ! product2 or 7,b7 all[s ! us] to make #a or m additional add-on transactions-- 7i7 t ! us] c\ld n h made )\t mak+ ! fir/ add-on transaction2 & 7ii7 ! cont5t ( :i* is unkn[n to ! us] until aft] ! us] has made ! fir/ add-on transaction4 #c4 ,en=cem5t & applicability 7a7 ,en=cem5t by ! ,commission 7#a7 ,9 g5]al ,except z o!rwise provid$1 ?is ,act %all be en=c$ by ! ,commission "u ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq474 7#b7 ,unfair or deceptive acts or practices ,a violation ( ?is ,act %all be treat$ z a violation ( a rule def9+ an unfair or deceptive act or practice prescrib$ "u section #ah7;a77#a77;,b7 ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #eg;a7a77#a77;,b774 7#c7 ,actions by ! ,commission 7,a7 ,9 g5]al ,except z provid$ 9 subsection 7c77#a71 ! ,commission %all prev5t any p]son f violat+ ?is ,act 9 ! same mann]1 by ! same means1 & ) ! same jurisdiction1 p[]s1 & duties z ?\gh all applicable t]ms & provisions ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 7 incorporat$ into & made a "p ( ?is ,act1 & any p]son :o violates ?is ,act %all be subject to ! p5alties & entitl$ to ! privileges & immunities provid$ 9 ! ,f$]al ,trade ,commission ,act4 7,b7 ,violations 7i7 ,9 g5]al ,9 an action br\ght by ! ,commission to en=ce ?is ,act1 ea* pay-to-w9 microtransaction or loot box sold to a us] :o is "u ! age ( #ah ?r\gh an int]active digital ent]ta9m5t product t does n meet a requirem5t ( ?is ,act %all be treat$ z a sep>ate violation4 7ii7 ,civil p5alty ,not)/&+ section #e7m7 ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #de7m771 a civil p5alty recov]$ = a violation ( ?is ,act may be 9 excess ( ! am\nts provid$ = 9 t section z ! c\rt f9ds appropriate to det] violations ( ?is ,act4 7iii7 ,fir/ violations ,9 an action br\ght by ! ,commission to en=ce ?is ,act1 ! ,commission may seek a civil p5alty = any violation ( ?is ,act1 includ+ any violation t is ! fir/ violation ( ?is ,act t a p]son aga9/ :om ! action is br\ght has committ$4 7b7 ,en=cem5t by ,/ate attorneys g5]al 7#a7 ,9 g5]al 7,a7 ,civil actions ,9 any case 9 :i* ! attorney g5]al ( a ,/ate has reason to believe t an int]e/ ( ! resid5ts ( t ,/ate has be5 or is ?reat5$ or adv]sely affect$ by ! engagem5t ( any p]son 9 a practice t violates ?is ,act1 ! ,/ate1 z p>5s patriae1 may br+ a civil action on behalf ( ! resid5ts ( ! ,/ate 9 an appropriate ,/ate c\rt to-- 7i7 enjo9 t practice2 7ii7 en=ce compliance ) ?is ,act2 7iii7 obta9 damages1 re/itution1 or o!r comp5sation on behalf ( resid5ts ( ! ,/ate2 or 7iv7 obta9 su* o!r relief z ! c\rt may consid] to be appropriate4 7,b7 ,notice 7i7 ,9 g5]al ,be=e fil+ an action "u subp>agraph 7,a71 ! attorney g5]al ( ! ,/ate involv$ %all provide to ! ,commission-- 7,i7 writt5 notice ( t action2 & 7,,ii7 a copy ( ! compla9t = t action4 7ii7 ,exemption 7,i7 ,9 g5]al ,clause 7i7 %all n apply ) respect to ! fil+ ( an action by an attorney g5]al ( a ,/ate "u ?is p>agraph if ! attorney g5]al ( ! ,/ate det]m9es t x is n feasible to provide ! notice describ$ 9 t clause be=e ! fil+ ( ! action4 7,,ii7 ,notification ,9 an action describ$ 9 subclause 7,i71 ! attorney g5]al ( a ,/ate %all provide notice & a copy ( ! compla9t to ! ,commission at ! same "t z ! attorney g5]al files ! action4 7#b7 ,int]v5tion 7,a7 ,9 g5]al ,on receiv+ notice "u p>agraph 7#a77;,b71 ! ,commission %all h ! "r to int]v5e 9 ! action t is ! subject ( ! notice4 7,b7 ,effect ( int]v5tion ,if ! ,commission int]v5es 9 an action "u p>agraph 7#a71 x %all h ! "r-- 7i7 to be he>d ) respect to any matt] t arises 9 t action2 & 7ii7 to file a petition = appeal4 7#c7 ,con/ruction ,= purposes ( br++ any civil action "u p>agraph 7#a71 no?+ 9 ?is ,act %all be con/ru$ to prev5t an attorney g5]al ( a ,/ate f ex]cis+ ! p[]s conf]r$ on ! attorney g5]al by ! laws ( t ,/ate to-- 7,a7 conduct inve/igations2 7,b7 adm9i/] oa?s or affirmations2 or 7,c7 compel ! att5dance ( witnesses or ! production ( docum5t>y & o!r evid5ce4 7#d7 ,actions by ! ,commission ,9 any case 9 :i* an action is in/itut$ by or on behalf ( ! ,commission = violation ( ?is ,act1 no ,/ate may1 dur+ ! p5d5cy ( t action1 in/itute an action "u p>agraph 7#a7 aga9/ any def5dant nam$ 9 ! compla9t 9 ! action in/itut$ by or on behalf ( ! ,commission = t violation4 7#e7 ,v5ue2 s]vice ( process 7,a7 ,v5ue ,any action br\ght "u p>agraph 7#a7 may be br\ght 9 any ,/ate c\rt ( compet5t jurisdiction4 7,b7 ,s]vice ( process ,9 an action br\ght "u p>agraph 7#a71 process may be s]v$ :]ev] ! def5dant-- 7i7 is an inhabitant2 or 7ii7 may be f\nd4 #d4 ,/udy ( compliance ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,commission %all submit to ea* committee ( ,congress ) jurisdiction ov] ! ,commission a report on-- 7#a7 ! actions tak5 by game publi%]s & digital game di/ributors to comply ) ?is ,act2 & 7#b7 o!r ,f$]al or ,/ate laws relat+ to pay-to-w9 microtransactions & loot boxes4 #e4 ,/udy ( ! effect ( pay-to-w9 microtransactions & loot boxes 7a7 ,9 g5]al ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,commission %all submit to ea* committee ( ,congress ) jurisdiction ov] ! ,commission a report on ! use ( add-on cont5t1 includ+ pay-to-w9 microtransactions1 loot boxes1 & o!r k9ds ( add-on transactions 9 ! design ( int]active digital ent]ta9m5t products = audi5ces ( all ages4 7b7 ,cont5t ( report ,! report requir$ "u subsection 7a7 %all-- 7#a7 analyze ! use ( pay-to-w9 microtransaction & loot box design practices 9 specific int]active digital ent]ta9m5t products2 7#b7 analyze ! psy*ological effects ( pay-to-w9 microtransactions & loot boxes on us]s2 7#c7 /udy game developm5t practices relat+ to pay-to-w9 microtransactions & loot boxes1 includ+ ,a_/,b te/+ ( v>i\s pay-to-w9 microtransaction or loot box designs2 7#d7 analyze ! effects ( pay-to-w9 microtransactions & loot boxes on inve/m5t & production 9 ! digital ent]ta9m5t indu/ry2 7#e7 docum5t diff]5t types ( pay-to-w9 microtransactions & loot boxes f\nd 9 int]active digital ent]ta9m5t products2 & 7#f7 analyze :e!r o!r =ms ( add-on transactions to int]active digital ent]ta9m5t products1 su* z ^? alt]+ a us]'s visual repres5tation )9 a product1 c induce compulsive pur*as+ behavior by m9ors4 7c7 ,use ( psy*ological rese>* ,! ,commission may conduct or commission psy*ological rese>* on us]s ( int]active digital ent]ta9m5t products to in=m ! report requir$ "u subsection 7a74