NY State Senate Bill 2019-S1416

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to consumer protection
Jan 14, 2019	referred to consumer protection

2019-S1416 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §396-kk-1, Gen Bus L
Versions Introduced in 2017-2018 Legislative Session:: S8505

2019-S1416 (ACTIVE) - Summary

Requires chances of randomized in-game purchases in video games to be disclosed; requires labeling of video games with randomized in-game purchases; restricts purchasing of video games with randomized in-game purchases to those eighteen years old or older.

2019-S1416 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1416

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the general business law, in relation to randomized
in-game purchases in video games

 
PURPOSE:

This bill will ensure the disclosure of the probability rates of loot
box type rewards to the consumer, create warning labels to make consum-
ers aware of the potentially harmful and addictive in-game purchases and
gambling-like mechanisms, allow for the auditing of video games by the
division of consumer protection and restrict sale to any person under
the age of eighteen.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends the general business law by adding a new
section, 396-kk-1, video games; randomized in-game purchase items.  Part

one of the section provides definitions for the terms, "video game",
"video game publisher", and "retailer".

Part two of the section establishes the requirement of disclosure to the
consumer with the publishing of probability rates of receiving random-
ized rewards and implementation of red warning labels in and on all
video games which contain in-game purchases of randomized rewards or a
consumable virtual item that can be redeemed and directly or indirectly
converted to a randomized reward, on behalf of video game publishers
that distribute games within the state and prohibits the modification of
a video games that were not appropriately labeled at the time of sale.

Part three of the section authorizes the auditing of video games by the
division of consumer protection to ensure that probability rates for
receiving each type of randomized reward or rewards are calculated
correctly and working properly.

Part four of the section prohibits the sale of games containing random-
ized rewards or virtual items that can be converted into randomized
rewards, to any person under eighteen years of age.

Section 2 of the bill sets the effective date.

 
JUSTIFICATION:

"Loot boxes", otherwise known as in-game purchases have been compared to
gambling and should be regulated as such. In Hawaii as well as countries
such as the UK, there has been a rise in controversy regarding the simi-
larity to gambling. Following in Hawaii's footsteps, Washington and
Illinois have also begun to introduce legislation regarding this prob-
lem. With many different names these in-game gambling like mechanisms
should follow the same guidelines as the state of New York in regards to
the legal age of gambling, eighteen.

When purchasing "loot boxes", there is no guarantee that you will secure
any of the possible items inside of the box. This bill would make it
necessary for the publisher to give consumers accurate probability rates
of winning the randomized reward.  In games such as Star Wars, League of
Legends, Call of Duty, Need for Speed, etc., consumers are spending
large sums of money. This shows how similar these games are to online
casinos. Consumers purchase the loot box without promise that the item
inside will be worth the money that they paid. Comparing the in-game
purchases to casinos, you are essentially putting money in for something
without being guaranteed to receive something of equal value or more in
return. Whereas other in-game purchases may be guaranteed, loot box type
purchases are not.

This bill will warn consumers about the possibly harmful and addictive
gambling-like mechanisms and in-game purchases that many games offer and
ensure minors aren't able to purchase without a parent or adult present.

 
FISCAL IMPACT ON THE STATE:

None

 
LEGISLATIVE HISTORY:

S8505 - referred to Consumer Protection

 
EFFECTIVE DATE:
This will become active 180 days after it has become a law.

2019-S1416 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1416
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 14, 2019
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01335-01-9

 S. 1416                             2
 
   (B) VIDEO GAMES DISTRIBUTED WITHIN THE STATE THAT CONTAIN A SYSTEM  OF
 PURCHASING  RANDOMIZED  REWARD  OR  REWARDS OR A CONSUMABLE VIRTUAL ITEM
 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.

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Senate Bill S1416

Sponsored By

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

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2019-S1416 (ACTIVE) - Details

2019-S1416 (ACTIVE) - Summary

2019-S1416 (ACTIVE) - Sponsor Memo

2019-S1416 (ACTIVE) - Bill Text download pdf

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Sponsored By

Kevin S. Parker

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Actions

2019-S1416 (ACTIVE) - Details

2019-S1416 (ACTIVE) - Summary

2019-S1416 (ACTIVE) - Sponsor Memo

2019-S1416 (ACTIVE) - Bill Text download pdf

Comments