The Federal Trade Commission should investigate Electronic Arts over its loot box feature in games, a practice that rakes in billions of dollars for the video game industry, according to a letter from several advocacy groups.
There is a video game on the shelves.
More than a dozen organizations, including children's advocacy, consumer rights and gambling support groups, have signed a letter accusing Electronic Arts of exploiting children and teens for profit.
A loot box is a virtual content pack or treasure chest that unlocks certain features in a game that almost always comes with a real-world price tag.
The video game industry earned 15 billion dollars from loot boxes in 2020.
According to the company's annual report, net revenue from extra content sales in the "Ultimate Team" game modes was over a billion dollars in the fiscal year that ended in June.
Forbes did not get a response from the company.
The FTC did not address loot boxes due to the associated risks. European countries have linked loot boxes to problem gambling more quickly. loot boxes are similar to gambling, according to a study by University of Plymouth and University of Wolves. The release of the game in Belgium and the Netherlands was called off due to the country's loot box laws. Due to its loot boxes laws, Electronic Arts stopped selling "FIFA Points", which cost money and can be used for packs in Belgium. Lawmakers in the United Kingdom want the practice of loot boxes to be treated as gambling.
The Dutch courts overturned a 10 million fine against the video game company after they sided with their argument that the game's loot boxes are not a requirement.
The financial report states that any events or circumstances that negatively impact our ability to reliably provide content for Ultimate Team would negatively impact our financial results.
The groups urged the FTC to investigate the game.
There are loot boxes associated with problem gambling.
The gaming industry's loot box problem is going to get worse.
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