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Genshin Impact Maker Fined $20 Million by FTC Over Loot Boxes and Privacy Violations

The settlement includes new parental consent measures, disclosures on in-game purchases, and compliance with child privacy laws.

Overview

  • Cognosphere, operating as HoYoverse, agreed to pay a $20 million fine to settle FTC allegations of deceptive practices and child privacy violations in Genshin Impact.
  • The FTC accused the company of misleading players about the cost and odds of obtaining rare loot box rewards and violating the Children's Online Privacy Protection Act (COPPA).
  • Under the settlement, HoYoverse will implement age-gating and parental consent requirements for players under 16 and disclose loot box odds and virtual currency exchange rates.
  • The company must delete any personal data collected from children under 13 without parental consent and ensure compliance with COPPA moving forward.
  • HoYoverse stated it disagrees with many of the FTC's claims but will adopt these measures to maintain player trust and transparency, initially in the U.S. with potential global rollout.