Economic Questions:
Have actual harms or market failures been identified related to loot boxes that suggest regulation is necessary? (In gambling regulation, justification is unrelated to economics.)
What is the market for loot box purchases? Which companies are selling loot boxes and who is buying them?
Why (and when) do we treat digital goods differently from physical goods?
Do loot boxes have analogues in the physical world, and, if so, have those resulted in harms?
How much money is spent on loot boxes annually, and what is the trend?
What are the demographics of people who purchase loot boxes?
Have loot boxes changed the demographics of who plays the games in any measurable way?
Have loot boxes changed the types of games that become popular?
Summary:
Loot boxes are used in video games for in-game virtual rewards a player obtains either through completing a skill, or using real world money to purchase the loot box. The contents of the box can include a range of items that may help the player advance in the game or decorate their avatar. These digital goods can be highly sought-after, increasing their real-world value.
In response to a request from Sen. Maggie Hassan (D-NH), the FTC announced a public workshop on loot boxes. The purpose of the workshop is to examine consumer protection issues that are related to loot boxes.
The workshop addressed the following issues with loot boxes:
Their role in the market place and in game transactions.
Effect on consumer behavior, especially in adolescents.
How to hold an effective discussion on consumer awareness when it comes to in-game digital transactions, and if marketing or addictive game mechanics have an impact.
The gaming industry say that loot boxes offer a surprise element to the game, which is ethical and fun. EA (a gaming company) compared them to the toy section in Target.
Concern comes from groups who believe loot boxes are a form of gambling. Users have no control over the content they will receive, and often purchase many loot boxes in search of a certain desirable item. Some worry about the effects on young children becoming addicted to purchasing loot boxes.