Genshin Impact slapped with $20 million fine by FTC for deceiving players

The Federal Trade Commission (FTC) has fined Genshin Impact publisher ‘Cognosphere’ $20 million under the Children's Online Privacy Protection Act (COPPA) for deceiving players into spending hundreds of dollars. Along with that, the FTC also order the company to block children under 16 from making any purchase without parental consent.

This comes following a complaint filed by the Department of Justice alleging that Cognosphere (HoYoverse) deceived players regarding the odds of winning, which here means acquiring a five-star character via loot boxes. The complaint also says that the game collected personal information from children which comes under COPPA violation.

“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,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection.

Furthermore, the complaint also says that the game confuses players with multiple currency exchanges with unusual denominations which can be confusing for teens and children.

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FTC hands a list of changes for Genshin Impact

Using the aforementioned methods FTC says the company is deploying dark-pattern tactics that deceive players regarding the true costs of in-game items. Epic Games have also been handed similar fines in the past which led to multiple changes to the in-game shop.

As a result, Cognosphere was handed a $20 million fine and a set of changes that must be implemented by the company in Genshin impact. While the amount may be that substantial considering the company makes well over $20 million each month, the other changes will also help.

These rules include offering the loot boxes to children under the age of 16 without parental consent. They are also prohibited from selling loot boxes through virtual currency without having the option to purchase them directly through real money.

Furthermore, the company is required to state the exchange rates for virtual currency, loot box odds delete any personal information previously collected from children under 13 unless it was obtained with parental consent. The FTC hopes by following these changes, players may get a better idea of how much they will need to spend.