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Genshin Impact developer agrees to fine $20 million for loot box violations
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| Update | January 18, 2025 |
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Publisher Genshin Impact Hoyoverse has agreed to a settlement with the US Federal Trade Commission where it agreed to pay a $20 million fine, and was banned from selling lootboxes to teenagers under the age of 16.
in Press release By the FTC, the agency announced that the maker of Genshin Effect “agreed to pay $20 million and prevent children under the age of 16 from purchasing the game without parental consent,” as part of a settlement with the Federal Trade Commission.
The FTC’s director of the Consumer Protection Bureau, Samuel Levine, said that the Genshin effect “has tricked children, teenagers, and other players into spending hundreds of dollars for prizes they have little chance of winning.” Levine added that companies that use “these dark-style tactics will be held accountable” if they mislead players, especially children and teenagers.
The main accusation against Hoyoverse by the FTC is that they accused the developer of violating the rules for protecting the online privacy of children by marketing Genshin to children and collecting their personal information, as well as deceiving players about the chance of winning a “five-star” loot box. Rewards, and how much it costs to open a loot box in the first place.
The FTC claims that the virtual currency system in Genshin Impact is complex and unfair, and that the system ultimately hides the fact that players will spend large amounts of money to get “five-star rewards” and that children will spend hundreds to thousands of dollars to get them. Win them.
Along with fines and bans, Hoyoverse must disclose loot box discrepancies and exchange rates for its virtual currency, delete personal information collected from children under the age of 13, and continue to comply with COPPA regulations.
Matt Kim is IGN’s Senior Features Editor.
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