Valve compares loot boxes to Labubus in its defense of the lawsuit



Despite the NYAG’s request, Valve said that transferring in-game items “is a right we believe should not be taken away, and we refuse to do so.” Valve also said it was concerned about the NYAG’s proposal, which would have required Valve to collect “additional information” from players, “in the event that someone in New York was anonymizing their location to appear outside of New York, for example using a VPN.” Valve writes that such processes, and others to further verify that children are not reselling items, would be an “invasive” violation for every Steam user.

Valve said it has been working to “educate” the NYAG office about loot boxes since they first spoke in 2023. While Valve has said it will respect any state law that expressly prohibits random loot boxes in games, the NYAG’s lawsuit “goes far beyond what is required and even by existing New York law.” So while it would be easier for Valve to settle the case, such an outcome “would be bad for users and other game developers, and would affect our ability to innovate in game design.”

Outside of the New York lawsuit, the law firm Hagens Berman preparing a proposed class action lawsuit Washington state accuses Valve of “extorting money from consumers, including children, through deceptive, casino-style psychological tactics.” The arguments of this suit mainly focus on the allegation that Valve used “psychological triggers” such as “unpredictable prize tables, sensory design, elusive illusions, chasing losses and around-the-clock availability” to create an addictive gambling cycle.



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