Game Industry Scores Well in FTC Report

The Federal Trade Commission’s (FTC) seventh report on Marketing Violent Entertainment to Children (PDF) contains good news for the videogame industry.

The FTC review labeled the games industry the "strongest” of the three entertainment sectors (games, music and movies), when it came to self-regulation. The Commission added that the game industry “did not specifically target M-rated games to teens or T-rated games to younger children.“ Additionally, compliance with the Entertainment Software Rating Board (ESRB) code within the videogame industry was “high in all media.”

Undercover shopping stings run by the FTC reported that retailers were “strongly enforcing” age restrictions for M-rated games, with “an average denial rate of 80%.” GameStop and Target were labeled as top enforcers. Toys R Us however, was specifically labeled as trailing when it came to enforcement, with only a 56% denial rate. The report called the use of gift cards to buy games online a “potential gap in enforcement.”

On the advertising side, the FTC found that game companies demonstrated a “high degree of compliance” when it came to television ads, with only a “few instances” of non compliance over a more than two-year period. The same description was used to depict compliance with videogame print ads.

FTC suggestions aimed directly at the game industry were adding content descriptors to the front of videogames, alongside ratings, and to continue to provide more detailed rating summaries online for parents. Additionally, all three industries were told to pay more attention to compliance within online and viral marketing campaigns.

Entertainment Software Association (ESA) President and CEO Michael D. Gallagher was understandably happy about the report, saying, "Today’s FTC report is a strong acknowledgement and validation that industry-led self-regulation efforts are the best way to provide parents and retailers with the resources and support they need to keep our kids’ entertainment experiences suitable."

The ESA press release also included a quote from National Institute on Media and the Family (NIMF) head, Dr. David Walsh, who stated, “We join the FTC in applauding the industry’s progress. The advancement in technology including parental controls by console makers, identification checking by retailers, and an ongoing effort to improve ratings illustrates that the members of the video game industry have taken our concerns seriously and continue to make sure that kids enjoy games that are age appropriate."

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