Cognosphere, the US subsidiary of Genshin Impact developer miHoYo, agreed to a $20 million settlement over allegations of "deceptive marketing" in the game’s gacha system and violations of child privacy laws.

"Genshin Impact deceived children, teens, and other players into spending hundreds of dollars on prizes they stood little chance of winning. Companies that deploy these dark-pattern tactics will be held accountable if they deceive players, particularly kids and teens, about the true costs of in-game transactions."

The US Federal Trade Commission is preparing to settle with the company behind the popular video game Genshin Impact over concerns that the money-making mechanics of the game were deceptive, according to people with knowledge of the matter.

Genshin Impact distributor Cognosphere has agreed to pay $20 million to settle charges made by the US Federal Trade

The company will pay, and make changes to its disclosures

The Federal Trade Commission (FTC) announced that companies misleading players about the “true cost of in-game transactions” will be “held accountable.”

The FTC penalized the Genshin Impact developer for misleading marketing around loot boxes and breaching child privacy laws.

In press release by the FTC, the agency announced that the makers of Genshin Impact "has agreed to pay $20 million and to block children under 16 from making in-game purchases wit