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. Samuel Levine, Director of the FTC's Bureau of Consumer Protection, criticized Hoyoverse's practices, alleging they misled players, particularly children and teens, into spending significant sums on in-game items with low odds of acquisition. He emphasized the FTC's commitment to holding companies accountable for deceptive "dark pattern" tactics.

The FTC's primary allegations against Hoyoverse center on violations of the Children's Online Privacy Protection Rule (COPPA). Specifically, the FTC claims Hoyoverse marketed Genshin Impact to children, collected their personal data without proper consent, and misrepresented the odds of winning rare "five-star" loot box prizes. The FTC further argues the game's virtual currency system was deliberately confusing, concealing the high cost of obtaining desirable items and leading to substantial spending by children.

In addition to the financial penalty and sales restriction, the settlement mandates that Hoyoverse: disclose the odds of winning loot box prizes and the exchange rates for virtual currency; delete personal information collected from children under 13; and ensure future compliance with COPPA regulations.