Hoyoverse, the publisher of the popular game Genshin Impact, has reached a $20 million settlement with the Federal Trade Commission (FTC). This settlement includes a ban on selling loot boxes to players under 16 without parental consent.
The FTC's press release details the agreement, stating Hoyoverse will pay the fine and implement measures to prevent underage in-app purchases. The FTC alleges Hoyoverse employed deceptive practices, misleading players—particularly children and teens—into spending significant sums on in-game prizes with low winning probabilities.
FTC Bureau of Consumer Protection Director Samuel Levine criticized Hoyoverse's tactics, emphasizing that companies using such "dark patterns" will face consequences. The FTC's primary claims center on Hoyoverse's alleged violations of the Children's Online Privacy Protection Rule (COPPA) through the collection of children's personal information and deceptive marketing practices. The complaint also cites the obfuscation of loot box odds and the high cost of obtaining desirable "five-star" prizes. The FTC argues that the game's virtual currency system was designed to be confusing and unfair, leading to substantial spending by minors.
As part of the settlement, Hoyoverse must:
- Pay a $20 million fine.
- Prohibit loot box sales to children 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 all COPPA regulations moving forward.
