Genshin Impact Developer Agrees to $20M Fine Over Loot Box Violations

Hoyoverse, the publisher of the popular game Genshin Impact, has reached a $20 million settlement with the Federal Trade Commission (FTC). The settlement includes a ban on selling loot boxes to players under 16 without parental consent.

The FTC's press release states that Hoyoverse will pay the fine and implement measures to prevent underage purchases. This follows allegations that the company misled players, particularly children and teens, about the odds of winning in-game prizes and the costs involved.

Samuel Levine, Director of the FTC's Bureau of Consumer Protection, criticized Hoyoverse's "dark-pattern tactics," stating that companies employing deceptive practices will face consequences. The FTC's primary claims center on violations of the Children's Online Privacy Protection Rule (COPPA), deceptive marketing practices regarding loot box odds, and a confusing virtual currency system. The FTC alleges these practices obscured the high cost of obtaining desirable in-game items, leading to significant spending by children.

As part of the settlement, Hoyoverse must:

• Pay a $20 million fine.
• Prevent in-app purchases by users under 16 without parental consent.
• Clearly disclose loot box odds and virtual currency exchange rates.
• Delete personal information collected from children under 13.
• Comply with COPPA regulations moving forward. This settlement underscores the FTC's commitment to protecting children and holding companies accountable for deceptive marketing practices in the gaming industry.