Genshin Impact Developer Agrees to $20M Fine Over Loot Box Violations

Genshin Impact publisher Hoyoverse has agreed to a settlement with the United States Federal Trade Commission where it agrees to pay a $20 million fine, and be banned from sellling lootboxes to teenagers under the age of 16.

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 without parental consent,” as part of a settlement with the Federal Trade Commission.

The FTC Director of of the Bureau of Consumer Protection, Samuel Levine, says that Genshin Impact “deceived children, teens, and other players into spending hundreds of dollars on prizes they stood little chance of winning.” Levine adds that companies that utilize “these dark-pattern tactics will be held accountable” if they decieve players, especially young children and teens.

The main charges against Hoyoverse by the FTC is that they allege the developer violated the Children’s Online Privacy Protection Rule by marketing Genshin Impact to children and collected their personal information, as well as deceive players about the odds of winning “five-star” loot box prizes, and how much it would cost to open a loot box int he first place.

The FTC claims the virtual currency system in Genshin Impact were confusing and unfair, and ultimately the system obscures the fact that players will ultimately spend large amounts of money to obtain “five-star prizes” and that children have spent hundreds to thousands of dollars to win them.

Alongside the fine and the ban, Hoyoverse will be required to disclose loot box odds and exchange rates for its virtual currency, delete personal information collected from children under the age of 13, and comply with COPPA rules going forward.

Matt Kim is IGN’s Senior Features Editor.