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. In a press release, the FTC highlighted that Hoyoverse will also prevent children under 16 from making in-game purchases without parental consent as part of this settlement.
Samuel Levine, the Director of the FTC's Bureau of Consumer Protection, criticized Hoyoverse for misleading children, teenagers, and other players, leading them to spend substantial amounts of money on prizes with low winning odds. Levine emphasized that companies employing such deceptive tactics, especially targeting young audiences, will face consequences.
The FTC's charges against Hoyoverse include violations of the Children's Online Privacy Protection Rule (COPPA). The allegations state that Hoyoverse marketed Genshin Impact to children, collected their personal information without proper consent, and misled players about the probabilities of obtaining "five-star" loot box prizes and the costs associated with opening these boxes. The FTC further contends that the game's virtual currency system is confusing and unfairly designed, obscuring the high costs players, particularly children, incur to acquire the coveted "five-star prizes."
In addition to the fine and age restrictions, Hoyoverse is mandated to disclose the odds of winning from loot boxes and the exchange rates for its virtual currency. The company must also delete any personal information collected from children under 13 and adhere to COPPA regulations moving forward.
