Genshin Impact Dev Hit With Fine

Hoyoverse, the publisher of the popular game Genshin Impact, has reached a $20 million settlement with the Federal Trade Commission (FTC). This settlement addresses allegations that Hoyoverse violated the Children's Online Privacy Protection Rule (COPPA) and engaged in deceptive practices concerning in-game purchases.

The FTC's press release highlights that the settlement includes a $20 million fine and a ban on selling loot boxes to children under 16 without parental consent. FTC Bureau of Consumer Protection Director Samuel Levine stated that the company's practices misled players, particularly children and teens, into spending significant sums on in-game items with low odds of winning. He emphasized the FTC's commitment to holding companies accountable for employing deceptive tactics.

The FTC's primary claims against Hoyoverse center on COPPA violations through the marketing of Genshin Impact to children and the collection of their personal data. Additionally, the FTC alleges that Hoyoverse misled players regarding the odds of obtaining "five-star" loot box prizes and the overall cost of acquiring them. The FTC contends that the game's virtual currency system was deliberately confusing and unfair, leading children to spend hundreds or even thousands of dollars.

As part of the settlement, Hoyoverse must:

• Pay a $20 million fine.
• Cease selling loot boxes to children under 16 without parental consent.
• Disclose the odds of winning loot box prizes and the exchange rates for virtual currency.
• Delete personal information collected from children under 13.
• Comply with all future COPPA regulations.