Valve compares its loot boxes to Labubus in lawsuit defense

"Valve said point-blank that transferability of in-game items "is a right we believe should not be taken away, and we refuse to do that" despite the NYAG's request. Valve also said it has worries about an NYAG proposal that would require Valve to collect "additional information" from players "on the off-chance someone in New York was anonymizing their location to appear outside of New York, such as by using a VPN.""

"Such processes, and others to further establish that children were not reselling items, would be an "invasive" violation for every Steam user, Valve wrote. Valve said it has been "working to educate" the NYAG's office on loot boxes since they first reached out on the matter in 2023."

"Law firm Hagens Berman is preparing a proposed class-action lawsuit in Washington state accusing Valve of "extract[ing] money from consumers, including children, through deceptive, casino-style psychological tactics." That lawsuit's arguments focus heavily on Valve's alleged use of "psychological triggers" like "unpredictable reward schedules, sensory design, near-miss illusions, chasing losses and around-the-clock availability.""

Valve has firmly rejected the New York Attorney General's demands regarding in-game item transferability and loot box regulations. The company maintains that item transferability is a fundamental user right that should not be restricted. Valve also opposes NYAG proposals requiring collection of additional player information to verify location and age, characterizing such measures as invasive privacy violations affecting all Steam users. While Valve claims to have educated regulators on loot boxes since 2023 and would comply with explicit state bans, it argues the NYAG's lawsuit exceeds existing legal requirements. Separately, a Washington state class-action lawsuit accuses Valve of using psychological manipulation tactics including unpredictable rewards and sensory design to create addictive gambling-like behavior targeting consumers and children.

Read at Ars Technica