Genshin Impact's publisher, Hoyoverse, has reached a significant settlement with the United States Federal Trade Commission (FTC), agreeing to pay a hefty $20 million fine. Additionally, Hoyoverse has committed to prohibiting the sale of loot boxes to teenagers under the age of 16. This decision follows an FTC press release that highlighted Hoyoverse's agreement to not only pay the fine but also to ensure that children under 16 cannot make in-game purchases without parental consent.
Samuel Levine, the Director of the FTC's Bureau of Consumer Protection, criticized Hoyoverse for misleading children, teens, and other players. He stated that the company deceived players into spending significant amounts of money on prizes with slim chances of winning. Levine emphasized that the FTC would hold companies accountable for using such manipulative "dark-pattern tactics," particularly when targeting young audiences.
The FTC's charges against Hoyoverse include violations of the Children's Online Privacy Protection Rule. The agency alleges that Hoyoverse marketed Genshin Impact to children and collected their personal information without proper consent. Furthermore, the FTC claims that Hoyoverse deceived players about the odds of winning coveted "five-star" loot box prizes and the costs associated with opening these boxes.
The virtual currency system within Genshin Impact was described by the FTC as confusing and unfair, masking the true cost of obtaining these "five-star" prizes. It was noted that children have spent hundreds to thousands of dollars in pursuit of these rewards, highlighting the system's potential for financial exploitation.
In addition to the financial penalty and the ban on loot box sales to minors under 16, Hoyoverse is required to take several corrective actions. These include disclosing the odds and exchange rates for loot boxes and virtual currency, deleting personal information collected from children under 13, and adhering to the Children's Online Privacy Protection Act (COPPA) rules moving forward.
