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.

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.