Extensive Violations of Call of Duty’s Terms of Service by SweatVPN Constitute Unfair and Deceptive Trade Practices

The Call of Duty video game franchise is one of the most popular and successful entertainment properties in the world, captivating millions of players with its intense first-person shooter gameplay. To maintain the integrity and fairness of the online gaming experience, Activision, the publisher of Call of Duty, has implemented robust security measures and enforcement policies. However, the company now faces a significant threat in the form of SweatVPN, a service that brazenly promotes the violation of Call of Duty's terms of service and undermines the game's anti-cheat protections.

This article provides a detailed analysis of how SweatVPN's business model and marketing practices constitute unfair and deceptive trade practices in violation of the Federal Trade Commission Act (“FTC Act”). By encouraging the use of its VPN service to circumvent Activision's security systems, manipulate gameplay, and gain unfair advantages, SweatVPN engages in conduct that not only harms Call of Duty players, but also undermines the competitive landscape of the gaming industry as a whole.

Activision's Call of Duty Terms of Service and Security Measures

Call of Duty End User License Agreement

The Call of Duty End User License Agreement (EULA) is a comprehensive contract that governs the use of Activision's games and associated services. Relevant to this analysis, the EULA prohibits several actions that are central to SweatVPN's business model:

  1. “Any user who utilizes any code and/or software not authorized by Activision that can be used in connection with the game and/or any component or feature thereof which changes and/or facilitates the gameplay or other activity, including to gain an unfair advantage, manipulate stats, and/or manipulate game data, is subject to penalty.”
  2. “Any attempt to circumvent our security systems may result in a permanent suspension.”
  3. “Any user who colludes with another user to exploit the game for the purpose of gaining XP, prestige, game score, weapon level, or in-game unlock is subject to penalty.”

Call of Duty Security and Enforcement Policy

Activision's Call of Duty Security and Enforcement Policy further outlines the company's commitment to maintaining a fair and enjoyable gaming experience for all players. The policy clearly defines prohibited conduct and the corresponding penalties, including temporary suspensions and permanent bans. Specifically, the policy states:

  1. “Any user who utilizes any code and/or software not authorized by Activision that can be used in connection with the game and/or any component or feature thereof which changes and/or facilitates the gameplay or other activity, including to gain an unfair advantage, manipulate stats, and/or manipulate game data, is subject to penalty.”
  2. “Extreme or repeated violations of this policy may result in permanent suspension of all accounts henceforth.”
  3. “Any attempt to circumvent our security systems may result in a permanent suspension.”
  4. “Detection of unauthorized software may also result in the automatic closure of the application.”

RICOCHET Anti-Cheat System & “SBMM”

To combat cheating and maintain a level playing field, Activision has implemented the RICOCHET Anti-Cheat system, which utilizes advanced data collection and machine learning techniques to identify and remove players engaged in unfair or malicious behavior. The RICOCHET system is a critical component of Activision's overall security measures, and any attempt to bypass or undermine its functionality is a clear violation of the company's terms of service, however we're not blind to it's failure and the allegations against SBMM.

SweatVPN's Unfair and Deceptive Trade Practices

SweatVPN's business model and marketing tactics directly contradict Activision's efforts to ensure a fair and enjoyable gaming experience for Call of Duty players. By promoting the use of its VPN service to circumvent Activision's security measures and gain unfair advantages, SweatVPN engages in unfair and deceptive trade practices that violate the FTC Act.

Circumventing Activision's Security Systems

The core of SweatVPN's service is to provide users with a means to bypass Activision's RICOCHET Anti-Cheat system. By routing players' internet traffic through its own servers, SweatVPN obfuscates their identities and device information, rendering RICOCHET's detection mechanisms ineffective. This allows SweatVPN customers to engage in various forms of cheating and exploitative behavior without fear of being identified and penalized by Activision.

SweatVPN's marketing materials openly advertise this capability, stating that its VPN service can “eliminate SBMM” (skill-based matchmaking) and “host bot lobbies” – clear indications of circumventing Activision's anti-cheat measures. This directly violates the EULA's prohibition on “any attempt to circumvent our security systems” and the Security and Enforcement Policy's warning that such actions “may result in a permanent suspension.”

Promoting Cheating and Exploitative Behavior

In addition to enabling the circumvention of Activision's security systems, SweatVPN actively encourages its users to engage in various forms of cheating and exploitative behavior within the Call of Duty games. The service's marketing materials prominently feature claims about “easy lobbies,” “higher kill games,” and “improving your KD” – all of which are indicative of boosting, collusion, and other prohibited conduct.

Specifically, the Security and Enforcement Policy states that “Any user who colludes with another user to exploit the game for the purpose of gaining XP, prestige, game score, weapon level, or in-game unlock is subject to penalty.” SweatVPN's business model is built on empowering its customers to engage in precisely this type of exploitative behavior, in direct violation of Activision's terms of service.

Deceptive Marketing Practices

SweatVPN's marketing tactics extend beyond merely promoting the circumvention of Activision's security measures and the facilitation of cheating. The service also engages in deceptive practices that mislead consumers about the legality and consequences of using its VPN in conjunction with Call of Duty.

For example, SweatVPN claims that its VPN service will allow users to “become the envy of [their] friends” and “rack up more wins” without any mention of the potential penalties imposed by Activision. This creates a false impression that using SweatVPN's services is a risk-free way to gain unfair advantages in the game, when in reality, such conduct is explicitly prohibited by the EULA and Security and Enforcement Policy and may result in severe consequences, including permanent account suspensions.

Furthermore, SweatVPN's testimonials from purported “content creators” and “streamers” further perpetuate the illusion that its services are a legitimate and accepted means of enhancing one's gaming performance. In reality, these endorsements are likely part of a broader influencer marketing campaign designed to obscure the inherent dangers and illegality of using SweatVPN's services in connection with Call of Duty.

Unfair and Deceptive Trade Practices Under the FTC Act

SweatVPN's business model and marketing tactics directly violate Section 5 of the Federal Trade Commission Act, which prohibits “unfair or deceptive acts or practices in or affecting commerce.” The FTC has repeatedly emphasized that unfair or deceptive conduct in the video game industry falls within the scope of this statute, making SweatVPN's actions a clear target for FTC enforcement.

Unfair Trade Practices

Under the FTC Act, an “unfair” practice is one that “causes or is likely to cause substantial injury to consumers which is not reasonably avoidable by consumers themselves and not outweighed by countervailing benefits to consumers or to competition.” SweatVPN's conduct meets this definition in several ways:

  1. Substantial consumer harm: By enabling and encouraging the circumvention of Activision's security measures and the engagement in cheating and exploitative behavior, SweatVPN undermines the fairness and enjoyment of the Call of Duty gaming experience for all players. This results in substantial harm to consumers, who are deprived of the level playing field and competitive integrity they have a reasonable expectation to enjoy.
  2. Lack of consumer control: Consumers have no reasonable means to avoid the harm caused by SweatVPN's services, as the company's actions directly undermine the protections put in place by Activision. Players who choose not to use SweatVPN are still subjected to the negative consequences of their opponents' unfair advantages.
  3. Lack of countervailing benefits: SweatVPN's services provide no legitimate benefits to consumers or the gaming industry as a whole. The company's sole purpose is to facilitate unfair and prohibited behavior, which runs counter to the interests of fair competition and the overall consumer experience.

Deceptive Trade Practices

The FTC Act also prohibits “deceptive” practices, which are those that are likely to mislead a reasonable consumer and affect their purchasing or usage decisions. SweatVPN's marketing tactics fall squarely within this definition:

  1. Misleading claims: SweatVPN's promotional materials make numerous claims about the ability of its VPN service to provide “easy lobbies,” “higher kill games,” and other unfair advantages, without adequately disclosing the risks and potential consequences of using such services in violation of Activision's terms of service.
  2. Lack of material information: SweatVPN fails to clearly inform consumers that the use of its VPN service to circumvent Activision's security measures and engage in cheating or exploitative behavior is explicitly prohibited and may result in severe penalties, including permanent account suspensions.
  3. Deceptive endorsements: The testimonials and influencer marketing used by SweatVPN create the false impression that its services are a legitimate and accepted way to enhance one's gaming performance, when in reality, such conduct is considered cheating and is subject to enforcement by Activision.

Potential Consequences and Enforcement Actions

SweatVPN's unfair and deceptive trade practices pose a significant threat to the integrity of the Call of Duty gaming ecosystem and the broader video game industry. As such, the company's actions are likely to draw the attention of the Federal Trade Commission, which has the authority to take various enforcement actions to protect consumers and promote fair competition.

FTC Enforcement Actions

Under the FTC Act, the Commission has the power to initiate a range of enforcement actions against SweatVPN, including:

  1. Cease and desist orders: The FTC can issue a cease and desist order, compelling SweatVPN to immediately halt its unfair and deceptive practices and refrain from engaging in similar conduct in the future.
  2. Monetary penalties: The FTC can seek civil monetary penalties of up to $46,517 per violation, which can quickly accumulate given the ongoing nature of SweatVPN's misconduct.
  3. Injunctive relief: The FTC can obtain a federal court order to prevent SweatVPN from continuing its unlawful practices and require the company to take affirmative steps to remedy the harm caused to consumers.
  4. Consumer redress: The FTC can seek to provide monetary relief to consumers who have been harmed by SweatVPN's unfair and deceptive practices, such as refunds for the purchase of the company's VPN service.

Coordination with Activision

In addition to FTC enforcement, Activision may also take independent legal action against SweatVPN to protect the integrity of the Call of Duty gaming experience and enforce its own terms of service. This could include:

  1. Intellectual property litigation: Activision may pursue claims for trademark infringement, copyright infringement, or trade secret misappropriation against SweatVPN, given the company's unauthorized use of Activision's intellectual property and game mechanics.
  2. Breach of contract claims: Activision can bring legal action against SweatVPN for breaching the terms of the Call of Duty EULA and Security and Enforcement Policy, which explicitly prohibit the conduct facilitated by SweatVPN's services.
  3. Coordination with law enforcement: Activision may choose to work with law enforcement agencies to investigate and potentially prosecute SweatVPN's activities, which may constitute criminal offenses such as computer fraud or unauthorized access to computer systems.

Acknowledgement of Activision's Internal Systems

It is important to note that while Activision has been granted several patents related to its RICOCHET Anti-Cheat system, the company has not issued any official statements or public disclosures regarding the technical details or functionality of this system. The analysis in this article is based solely on the information provided in Activision's publicly available terms of service and security policies, which prohibit the circumvention of the company's security measures and the facilitation of cheating or exploitative behavior.

FTC Must Act

SweatVPN's brazen disregard for Activision's terms of service and its efforts to undermine the integrity of the Call of Duty gaming experience through unfair and deceptive trade practices are unacceptable. The company's actions not only harm individual players, but also threaten the overall health and competitiveness of the video game industry.

The Federal Trade Commission, in coordination with Activision, must take swift and decisive action to address this threat. By enforcing the FTC Act and holding SweatVPN accountable for its unlawful conduct, the Commission can send a strong message that such exploitation of gaming communities will not be tolerated. Ultimately, the protection of consumers and the preservation of fair competition should be the paramount priorities in this matter.

SweatVPN's Services Enable Wire Fraud

In addition to violating Activision's terms of service, the use of SweatVPN to generate unlawful profits from Call of Duty gameplay constitutes a form of wire fraud under federal law.

The federal wire fraud statute, 18 U.S.C. § 1343, prohibits any scheme or artifice to defraud that involves the use of interstate wire communications. Specifically, the statute criminalizes the use of “wire, radio, or television communication in interstate or foreign commerce” to further “any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises.”

By promoting the use of its VPN service to circumvent Activision's security measures and enable cheating, boosting, and other exploitative behaviors within Call of Duty, SweatVPN is directly facilitating a scheme to defraud both Activision and the game's player base. Individuals who then utilize SweatVPN to monetize their ill-gotten in-game advantages through the sale of items, accounts, or boosting services are engaging in wire fraud.

The transmission of payment information, account details, or other data across state or international lines in furtherance of this fraudulent activity satisfies the wire communication requirement of the statute. Furthermore, the misrepresentation of one's gameplay abilities and the concealment of the use of unauthorized third-party software constitute the necessary “false or fraudulent pretenses” to establish wire fraud.

The penalties for wire fraud are severe, with offenders facing up to 20 years in prison, as well as significant monetary fines. The FTC and Department of Justice have demonstrated a willingness to aggressively pursue such cases in the video game industry, making SweatVPN users who seek to profit from their exploitative conduct especially vulnerable to federal prosecution.

Activision, in coordination with law enforcement agencies, must take swift action to shut down SweatVPN's operations and hold accountable any individuals who have used the service to engage in wire fraud or other unlawful moneymaking schemes related to Call of Duty. Protecting consumers and maintaining the integrity of the gaming ecosystem are paramount concerns that justify a robust enforcement response.