Genshin Impact maker fined $20M over loot box deception
The FTC penalized HoYoverse for misleading marketing around loot boxes and breaching child privacy laws.
Credit: Hadlee Simons / Android Authority
- The FTC fined Genshin Impact developer HoYoverse $20 million for misleading loot box practices and violating children’s privacy laws.
- The game allegedly deceived players about the cost and odds of obtaining rare prizes and collected data from children under 13 without parental consent.
- HoYoverse must now block purchases by children under 16 without parental approval, disclose loot box odds, and comply with stricter privacy rules.
The Federal Trade Commission (FTC) has reached a settlement with the makers of Genshin Impact over allegations of deceptive marketing practices and violations of children’s privacy laws. The agreement requires Cognosphere, also known as HoYoverse in the US, to pay $20 million and implement strict changes to its policies.
An FTC press release on Friday accused the popular game developer of misleading children and other players about the cost and odds of obtaining rare in-game rewards, known as “five-star” loot box prizes. The complaint also alleged that HoYoverse violated the Children’s Online Privacy Protection Act (COPPA) by collecting personal data from children under 13 without parental consent.
