S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10075
 
                           I N  A S S E M B L Y
 
                              March 14, 2018
                                ___________
 
 Introduced  by  M.  of A. DINOWITZ, GALEF, JAFFEE, SEAWRIGHT, DICKENS --
   read once and referred  to  the  Committee  on  Consumer  Affairs  and
   Protection
 
 AN  ACT  to  amend  the  general business law, in relation to randomized
   in-game purchases in video games
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The general business law is amended by adding a new section
 396-kk-1 to read as follows:
   §  396-KK-1. VIDEO GAMES; RANDOMIZED IN-GAME PURCHASE ITEMS. 1.  DEFI-
 NITIONS. FOR PURPOSES OF THIS SECTION:
   (A) "VIDEO GAME" MEANS AN  INTERACTIVE  ELECTRONIC  AMUSEMENT  DEVICE,
 DISK, CARTRIDGE OR OTHER OBJECT THAT UTILIZES A COMPUTER, MICROPROCESSOR
 OR SIMILAR ELECTRONIC CIRCUITRY AND ITS OWN MONITOR, A TELEVISION SET OR
 A  COMPUTER  MONITOR,  AND  SUCH DEVICE OR OBJECT IS DESIGNED TO ALLOW A
 PERSON TO MANIPULATE THE IMAGES PRESENTED BY SUCH DEVICE OR OBJECT.
   (B) "VIDEO GAME PUBLISHER" MEANS AN ENTITY THAT PUBLISHES VIDEO  GAMES
 THAT HAVE EITHER BEEN CREATED INTERNALLY OR THROUGH A SEPARATE ENTITY.
   (C)  "RETAILER"  MEANS ANY PERSON OR ENTITY WHO OFFERS VIDEO GAMES FOR
 SALE, INCLUDING RESALE BY THE PURCHASER, THROUGH ANY  MEANS,  INCLUDING,
 BUT NOT LIMITED TO, SALES OUTLETS, CATALOGS, OR THE INTERNET.
   2.  DISCLOSURE.  (A) VIDEO GAME PUBLISHERS THAT DISTRIBUTE VIDEO GAMES
 WITHIN THE STATE THAT CONTAIN A SYSTEM OF PURCHASING  RANDOMIZED  REWARD
 OR REWARDS OR A CONSUMABLE VIRTUAL ITEM THAT CAN BE REDEEMED AND DIRECT-
 LY OR INDIRECTLY CONVERTED TO A RANDOMIZED REWARD OR REWARDS SHALL PROM-
 INENTLY  DISCLOSE  AND  PUBLISH TO THE CONSUMER THE PROBABILITY RATES OF
 RECEIVING EACH TYPE OF RANDOMIZED REWARD  OR  REWARDS  AT  THE  TIME  OF
 PURCHASE AND AT THE TIME ANY MECHANISM TO RECEIVE A RANDOMIZED REWARD OR
 REWARDS  IS  ACTIVATED SO AS TO MEANINGFULLY INFORM THE CONSUMER'S DECI-
 SION PRIOR TO THE PURCHASE OR ACTIVATION OF ANY MECHANISM TO  RECEIVE  A
 RANDOMIZED REWARD OR REWARDS.
   (B)  VIDEO GAMES DISTRIBUTED WITHIN THE STATE THAT CONTAIN A SYSTEM OF
 PURCHASING RANDOMIZED REWARD OR REWARDS OR  A  CONSUMABLE  VIRTUAL  ITEM
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14839-03-8

 A. 10075                            2
 
 THAT  CAN  BE REDEEMED AND DIRECTLY OR INDIRECTLY CONVERTED TO A RANDOM-
 IZED REWARD OR REWARDS SHALL:
   (1)  BEAR A PROMINENT, EASILY LEGIBLE, BRIGHT RED LABEL ON ITS PACKAG-
 ING WHICH READS: "WARNING: CONTAINS IN-GAME PURCHASES AND  GAMBLING-LIKE
 MECHANISMS WHICH MAY BE HARMFUL OR ADDICTIVE"; OR
   (2)  IF  PURCHASED DIGITALLY AND DOWNLOADED THROUGH THE INTERNET OR AN
 ONLINE APPLICATION, PROMINENTLY DISCLOSE TO THE CONSUMER AT THE TIME  OF
 CONSUMER  PURCHASE  A  BRIGHT RED LABEL THAT IS EASILY LEGIBLE AND WHICH
 READS: "WARNING:   CONTAINS IN-GAME PURCHASES  AND  GAMBLING-LIKE  MECH-
 ANISMS  WHICH MAY BE HARMFUL OR ADDICTIVE", SO AS TO MEANINGFULLY INFORM
 THE CONSUMER'S DECISION PRIOR TO PURCHASE.
   (C) NO VIDEO GAME PUBLISHER SHALL AT ANY  TIME  MODIFY  A  VIDEO  GAME
 DISTRIBUTED  WITHIN  THE STATE TO CONTAIN OR OTHERWISE PERMIT THE INCLU-
 SION OF ADDITIONAL CONTENT FOR WHICH  THE  GAME  WAS  NOT  APPROPRIATELY
 LABELED AT THE TIME OF ORIGINAL SALE.
   3.  AUDIT  OF  VIDEO  GAMES.  THE  DIVISION  OF CONSUMER PROTECTION IS
 AUTHORIZED TO AUDIT THE CODE OF VIDEO GAMES SOLD WITHIN  THE  STATE  AND
 SUBJECT TO THIS SECTION TO ENSURE THAT THE PROBABILITY RATES FOR RECEIV-
 ING  EACH  TYPE OF RANDOMIZED REWARD OR REWARDS ARE CALCULATED CORRECTLY
 AND WORKING PROPERLY. SUCH DIVISION MAY CONTRACT WITH A THIRD  PARTY  TO
 PROVIDE ADDITIONAL ASSISTANCE AS NEEDED. SUCH DIVISION SHALL NOT PUBLIC-
 LY  DISCLOSE  PROPRIETARY  INFORMATION BEYOND THAT WHICH IS NECESSARY TO
 FULFILL THE INTENT OF THIS SECTION.
   4. SALE RESTRICTIONS. IT SHALL BE UNLAWFUL FOR ANY RETAILER TO SELL TO
 ANY PERSON UNDER EIGHTEEN YEARS OF AGE A  VIDEO  GAME  THAT  CONTAINS  A
 SYSTEM OF FURTHER PURCHASING:
   (A) A RANDOMIZED REWARD OR REWARDS; OR
   (B)  A  VIRTUAL  ITEM  WHICH CAN BE REDEEMED TO DIRECTLY OR INDIRECTLY
 RECEIVE A RANDOMIZED REWARD OR REWARDS.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.  The director of the  division  of  consumer
 protection is authorized to promulgate any and all rules and regulations
 and  take  any  other  measures  necessary  to implement this act on its
 effective date on or before such date.