Hoyoverse, the publisher behind the popular game Genshin Impact, has reached a significant settlement with the United States Federal Trade Commission (FTC). As part of this agreement, Hoyoverse will pay a hefty fine of $20 million and implement a ban on selling loot boxes to teenagers under the age of 16. This decision stems from a series of allegations made by the FTC against the gaming company.
In a press release, the FTC detailed that Hoyoverse has committed to paying the fine and ensuring 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 Genshin Impact for misleading children, teens, and other players. He stated that the game encouraged players to spend significant amounts of money on prizes with low winning odds, labeling these as "dark-pattern tactics." Levine emphasized that such deceptive practices, particularly those targeting young audiences, would face accountability.
The FTC's main accusations against Hoyoverse revolve around violations of the Children's Online Privacy Protection Rule (COPPA). The agency claims that Hoyoverse marketed Genshin Impact to children and improperly collected their personal information. Furthermore, the FTC alleges that Hoyoverse misled players about the odds of winning coveted "five-star" loot box prizes and the costs associated with opening these loot boxes.
The FTC also pointed out that the virtual currency system within Genshin Impact was confusing and unfair. This system, according to the FTC, obscured the reality that players, especially children, would need to spend large sums of money to obtain the desired "five-star" items. Reports have surfaced of children spending hundreds to thousands of dollars in pursuit of these prizes.
In addition to the fine and the ban on loot box sales to minors, Hoyoverse is required to take several corrective actions. These include disclosing the odds of winning from loot boxes and the exchange rates for its virtual currency, deleting personal information collected from children under 13, and adhering to COPPA regulations moving forward.
