ORIGINAL STORY 17/01/25 UK: Genshin Impact maker HoYoverse has agreed to pay $20m to settle a complaint - filed by the US Department of Justice on behalf of the Federal Trade Commission - accusing it of violating children's privacy laws and deceiving users over the true cost of obtaining rare loot box prizes.

A newly published settlement between the FTC and HoYoverse targets HoYoverse's unchecked permissions for children to play and exploitative loot box and microcurrency systems.

Genshin Impact remains one of the most popular gacha games in the world, constantly adding new regions and characters, but now they’ve run afoul of the FTC

"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 maker of the video game Genshin Impact has agreed to pay $20 million and to block children under 16 from making in-game purchases without parental consent,” a press relea

The allegation that Genshin Impact misleads children about the odds of winning "Five-Star Prizes" in part relates to the Event Banners and "influencer campaigns", which the FTC says "give players the impression that they will have better odds of obtaining the five-star prize being promoted than they have in reality."

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

The company will pay, and make changes to its disclosures

The FTC says "Genshin Impact deceived children, teens, and other players into spending hundreds of dollars on prizes they stood little chance of winning."

The FTC's complaint alleges that Singapore-based Cognosphere deceived children and other users about the real costs of in-game transactions and the odds of obtaining rare prizes.

HoYoverse, publisher of the popular gacha game Genshin Impact, has agreed to pay a $20 million fine and change its marketing practices. The Latest Tech News, Delivered to Your Inbox