Genshin Impact's publisher, Hoyoverse, has reached a settlement with the United States Federal Trade Commission (FTC), agreeing to pay a hefty $20 million fine. In addition, the company will no longer be allowed to sell loot boxes to teenagers under the age of 16. This decision was announced by the FTC in a recent press release, highlighting Hoyoverse's commitment to "block children under 16 from making in-game purchases without parental consent."
Samuel Levine, the Director of the FTC's Bureau of Consumer Protection, criticized Genshin Impact for misleading its young audience. He stated that the game "deceived children, teens, and other players into spending hundreds of dollars on prizes they stood little chance of winning." Levine emphasized that the FTC is committed to holding companies accountable for using "dark-pattern tactics" that deceive players, particularly young children and teenagers.
The FTC's primary allegations against Hoyoverse include violations of the Children's Online Privacy Protection Rule. The developer is accused of marketing Genshin Impact to children and collecting their personal information, as well as deceiving players about the odds of winning coveted "five-star" loot box prizes and the actual costs associated with opening these loot boxes.
The FTC also pointed out that the virtual currency system within Genshin Impact is confusing and unfair. It masks the true cost players will incur to obtain "five-star prizes," leading to children spending hundreds to thousands of dollars in pursuit of these items.
As part of the settlement, Hoyoverse must take several corrective actions. They are required to disclose the odds of winning loot box prizes and the exchange rates for their virtual currency. Additionally, they must delete personal information collected from children under the age of 13 and ensure compliance with COPPA rules moving forward.
