Intro: This has been on my mind forever and the tech industry has exploded since COVID, especially in the gaming sector. While this topic is not important to older generations, these issues have and continue to severely impact consumers on a monthly & daily basis. This industry has little to no regulation. Consumers are often given half finished products that do not meet what is advertised. Or these companies use extremely predatory tactics to increase consumer spending whether they’re an adult or minor.
Objective: To establish regulations that ensure gaming companies, tech companies, software developers & providers, and telecommunications firms adhere to fair practices for consumers. Provide protections to consumers from predatory behaviors of such studios. And establish a way for companies to pursue legal avenues against nefarious 3rd parties.
Key Points:
1) Product Quality Standards:
- Require companies to meet specific quality benchmarks before a product’s release to market.
- Independent review boards (private or publicly funded) could assess a game or software’s especially for AAA developers such as (EA, Microsoft, Sony, Activision, Ubisoft).
2) Transparency and Consumer Rights
- Empower consumers with the rights to refund from a physical or digital market place if a game or software is delivered to market not as advertised.
- Games sold to minors cannot use predatory tactics or have gambling like mechanics to lure people to spend money. Loot Boxes, Skin Packs, etc…
- Software or Games with subscriptions must be easily cancelled if consumer wishes. (F*ck you adobe)
3) Employee Protection and Ethical Development Practices:
- Establish fair work place standards to prevent overwork, ensuring employees are not overworked to rush development, which has contributed to unfinished releases.
- Protect whistleblowers within gaming and software companies who report unethical management practices.
- Improve FLSA to better protect tech employees.
4) Micro transaction Regulations
- Clear Disclosure: Require companies to clearly disclose the presence of micro transactions and their nature. (e.g. pay-to-win features, cosmetic items, DLC content) (Must also disclose in advertising)
- Age Restrictions: Implement age restrictions on games with certain types of micro transactions, especially where randomized “loot boxes” or gambling-like elements are involved. To purchase these games you must be 18 or older.
- Transparency in Odds: for games with randomized rewards (like loot boxes), mandate that companies publicly disclose their exact odds of receiving different items to provide transparency. Must be displayed in- game clearly.
- Limit Spending: Set monthly or per-game spending caps, ESPECIALLY FOR MINORS, to prevent excessive spending. Allow use of 3rd party id verification for games rated by the ESRP E through T. If a game is rated M you are of adult age.
- Games marketed towards children and minors cannot contain Micro-transactions of any kind.
- The ability to easily refund micro transactions. For example if a child takes their parent’s credit card and spends $300 on fortnite skins.
- Cosmetic Micro-transactions cannot exceed a certain $$ amount. A cosmetic micro-transaction should not exceed 10% of the original cost of the game. For example if you pay $60 for a game you cant have a in game micro transaction that costs $30 for 2 skins.
- Cleary display in-game all micro-transactions are not owned by the consumer. Because they aren’t and its a purely digital item.
- Penalties for Non-Compliance
- impose fines or other penalties on companies and individuals that habitually release low-quality products and deceive consumers.
- Create a tiered penalty system where repeated offenders and infractions lead to increased sanctions and penalties. Up to and including restrictions on future releases until compliance is achieved.
- Art, AI, & Digital Assets
- Any art created by individuals cannot be used to train company or business owned AI programs or assets.
- Any Art created by individuals is owned by them and cannot be re-used or redistributed or altered by software publishes & game developers without the consent of that user/artist.
- The use of AI in development must be clearly disclosed.
- The use of AI to replicate someone’s voice or face without their consent is illegal.
- Anti-Cheating and Fair Play Standards
- Penalties for Cheating: Require game developers to have clear policies on cheating, anti-cheat software, and for users who continually violate a company’s Terms of Service.
- Criminalize Cheat Development and Distribution: Make it illegal to develop or distribute cheat software that disrupts online gameplay of others. Establish fines and penalties for individuals or companies who engage in this behavior.
- Selling & Distribution of 3rd Party devices: Devices advertised as disability assistance or accessibility devices cannot enhance the gameplay or alter the manner in which the game was intended to be played. Fines and penalties for distribution of such items will not be limited to fines and prison.
- Protecting User Data: encourage developers to ensure data and user data is stored and properly protected. Data that has been compromised must be reported to the user clearly.
Legal Avenues for Companies: - Civil Actions: Grant gaming companies the right to pursue civil action against cheat developers, with provisions allowing them to seek damages for revenue loss and reputational harm.
- Asset Seizure and Injuctions: Permit courts to issue injunctions to halt the distribution of cheats and seize assets generated by cheat sales or distribution.
- Criminal Prosecution for Repeat Offenders: Tiered penalty system for users who continually cheat and circumvent account suspensions and bans. While ruining a state of fair play for a product or service for other consumers.
- International Cooperation: facilitate international cooperation for tracking and prosecuting cheat developers based outside the United States or Company’s jurisdiction to pursue civil action. Promoting a global standard for fair play.
- Crowdfunding and Project Accountability Standards
- Verification for Crowdfunding Campaigns: Require developers to submit a detailed project plan and budget to a 3rd party platform verifier or publisher. (Such as crowdfunding site itself or a publisher like Valve)
- Milestone based funding: Implement a milestone based funding release system where funds are distributed in phases based on progress. This could involve updates, demos, or transparency reports, ensuring backers are kept informed and can assess the game’s development progress.
- Transparency and Reporting Requirements: Mandate regular progress reports from developers, including clear project timelines, financial updates and specific deliverables to prove ongoing work on the game. Non- compliance could lead to restricted access to additional funding or potential platforms bans and refunds.
- Penalties for Fraudulent Campaigns: Establish penalties for developers who mislead backers/investors. Penalties could include fines, refund requirements, or even legal action for egregious cases. Or even a possibility to prosecute under securities fraud.
- Consumer Protection for Refunds: Require crowdfunding platforms to offer refunds if a developer fails to meet initial milestones or abandons project without explanation. This protects backers from losing money in cases of clear fraud or neglect.
Rational: Encourage honest crowdfunding and allow consumers to get back their money or pursue civil and legal remedies.
- Selling and Distribution of User Data & Privacy Standards
Strict Data Collection Limits: Limit the amount and type of personal data that gaming companies can collect, ensuring they only gather information essential for gameplay, security, or customer support. Any data collection beyond this scope should require explicit user consent.
Transparency and User Consent: Require companies to disclose their data collection and usage policies in clear, easy-to-understand language. Users should be able to review, consent to, and opt out of data collection practices before engaging with the game.
Enhanced Security Measures: Mandate that gaming companies implement industry-standard encryption and security measures to protect user data from breaches, hacking attempts, and unauthorized access. Regular security audits should be conducted to ensure compliance.
Data Retention and Deletion Rights: Establish a standard data retention period, after which data that is no longer necessary for gameplay or customer support must be securely deleted. Users should also have the right to request data deletion at any time.
Ban on Unauthorized Data Sharing or Sale: Prohibit companies from selling or sharing user data with third parties without user consent, especially for advertising or marketing purposes. Clear opt-in permissions should be required if data is shared with any partner.
Incident Reporting and User Notification: Require companies to promptly inform users if a data breach occurs, including what data was affected and what steps are being taken to mitigate the issue. Companies must also provide guidance to users on how they can protect themselves following a breach.
Overall rational: This legislation would protect people from bad actors who actively try to deceive minors and adult consumers. Too long has this industry run rampant abusing the consumers day in and day out. Despite numerous cases and examples there has been little to no change across the tech & gaming industry resulting in a shady, unethical and unregulated marketplace all while preying on consumers because we cannot do anything. Protecting us from half-finished products, stealing and selling of user data (including minors), and encouraging addictive and gambling like behaviors.