Genshin Impact's publisher, Hoyoverse, has reached a significant settlement with the United States Federal Trade Commission (FTC), agreeing to a $20 million fine and implementing a ban on selling loot boxes to individuals under the age of 16. This decision comes after the FTC's investigation into the practices surrounding the popular game.
In a recent press release, the FTC disclosed that Hoyoverse, the company behind Genshin Impact, "has agreed to pay $20 million and to block children under 16 from making in-game purchases without parental consent." This settlement marks a pivotal step in addressing concerns about in-game purchases and the protection of young players.
Samuel Levine, the Director of the FTC's Bureau of Consumer Protection, highlighted the severity of the issue, stating that Genshin Impact "deceived children, teens, and other players into spending hundreds of dollars on prizes they stood little chance of winning." Levine emphasized that companies employing "these dark-pattern tactics will be held accountable," particularly when they target young audiences.
The FTC's primary allegations against Hoyoverse include violations of the Children's Online Privacy Protection Rule (COPPA). The developer is accused of marketing Genshin Impact to children, collecting their personal information without proper consent, and misleading players about the odds of winning coveted "five-star" loot box prizes. The agency also pointed out that the virtual currency system within Genshin Impact was confusing and unfair, leading players, especially children, to spend significant amounts of money in pursuit of these rare rewards.
As part of the settlement, Hoyoverse is not only facing the fine and the ban on loot box sales to minors but is also required to take several corrective actions. These include disclosing the odds of winning loot box prizes and the exchange rates for its virtual currency, deleting personal information collected from children under 13, and ensuring compliance with COPPA regulations moving forward.
