Hoyoverse, the publisher behind the popular game Genshin Impact, has reached a settlement with the United States Federal Trade Commission (FTC), agreeing to pay a hefty fine of $20 million. As part of this settlement, Hoyoverse will also be prohibited from selling loot boxes to players under the age of 16 without obtaining parental consent. This decision was announced in a press release by the FTC, highlighting the agency's commitment to protecting younger audiences from potentially exploitative gaming practices.
Samuel Levine, the Director of the Bureau of Consumer Protection at the FTC, emphasized the deceptive nature of Genshin Impact's monetization strategies. Levine stated that the game misled children, teenagers, and other players into spending significant amounts of money on in-game items with slim chances of winning desirable prizes. He stressed that companies employing such "dark-pattern tactics" would face consequences, particularly when it comes to deceiving young players.
The FTC's charges against Hoyoverse include violations of the Children's Online Privacy Protection Rule (COPPA). The agency alleges that Hoyoverse marketed Genshin Impact to children and improperly collected their personal information. Additionally, the FTC claims that Hoyoverse misled players about the probabilities of winning high-value "five-star" items from loot boxes and the actual costs associated with these purchases.
The virtual currency system in Genshin Impact was criticized by the FTC as being confusing and unfair. According to the FTC, this system made it difficult for players to understand the true cost of obtaining "five-star prizes," leading to children spending hundreds to thousands of dollars in pursuit of these items.
In addition to the fine and the ban on selling loot boxes to minors without parental consent, Hoyoverse is required to take several corrective actions. These include disclosing the odds of winning items from loot boxes and the exchange rates for its virtual currency, deleting personal information collected from children under 13, and ensuring compliance with COPPA rules moving forward.
