Hoyoverse, the publisher behind the popular game Genshin Impact, has reached a settlement with the United States Federal Trade Commission (FTC). As part of this agreement, Hoyoverse will pay a $20 million fine and will no longer be allowed to sell loot boxes to teenagers under the age of 16. The FTC's press release emphasized that Hoyoverse "has agreed to pay $20 million and to block children under 16 from making in-game purchases without parental consent."
Samuel Levine, the Director of the FTC's Bureau of Consumer Protection, criticized Genshin Impact for misleading its young players. He stated that the game "deceived children, teens, and other players into spending hundreds of dollars on prizes they stood little chance of winning." Levine further warned that companies employing "these dark-pattern tactics will be held accountable," especially when it involves deceiving young children and teenagers.
The FTC's main allegations against Hoyoverse include violations of the Children's Online Privacy Protection Rule. They claim that Hoyoverse marketed Genshin Impact to children, collected their personal information, and misled players about the odds of winning "five-star" loot box prizes and the costs associated with opening these loot boxes. The FTC also criticized the game's virtual currency system, describing it as confusing and unfair. They argue that it obscures the true cost of obtaining "five-star prizes," leading children to spend hundreds to thousands of dollars.
In addition to the fine and the ban on selling loot boxes to minors under 16, Hoyoverse is required to take several corrective actions. These include disclosing the odds of loot boxes and the exchange rates for its virtual currency, deleting personal information collected from children under 13, and ensuring compliance with the Children's Online Privacy Protection Act (COPPA) moving forward.
