HoYoverse faces penalties for deceptive practices in Genshin Impact, including predatory loot boxes and COPPA violations.
The Federal Trade Commission (FTC) reached a $20 million settlement with the developer of Genshin Impact, Cognosphere Pte. Ltd., and its U.S. subsidiary this month for alleged violations of children’s privacy laws and deceptive practices. The company was accused of collecting personal information from children under 13 without parental consent, violating the Children’s Online Privacy Protection Act (COPPA).
The game misled players, especially children and teens, regarding the costs and odds of obtaining rare in-game prizes. Players often had to exchange real money for in-game currency multiple times before accessing loot boxes, which made tracking actual costs difficult. To resolve these allegations, the company will block children under 16 from making in-game purchases without parental approval, disclose loot box odds, and comply with COPPA’s notice and consent requirements.
“Genshin Impact deceived children, teens, and other players into spending hundreds of dollars on prizes they stood little chance of winning,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Companies that deploy these dark-pattern tactics will be held accountable if they deceive players, particularly kids and teens, about the true costs of in-game transactions.”
The proposed settlement mandates changes such as direct payment options for loot boxes, transparency in odds and pricing, and the deletion of improperly collected children’s data unless parental consent is obtained.
As the Lord Leads, Pray with Us…
- For Director Levine to receive God’s wisdom as he oversees the Bureau of Consumer Protection.
- For members of the FTC as they evaluate businesses with questionable ethical practices.
Sources: Federal Trade Commission
