The maker of the popular video game Genshin Impact, HoYoverse, has agreed to pay a $20 million fine and change its practices to settle Federal Trade Commission (FTC) charges. The FTC alleged that HoYoverse misled players about the odds and costs of obtaining rare in-game items through “loot boxes” and violated children’s privacy laws. Genshin Impact Developer Faces $20 Million Fine. Check out the detailed information below:
Genshin Impact Faces $20 Million Fine
HoYoverse was accused of deceiving players, particularly children and teens, about the likelihood of winning highly desirable “five-star” items and the real-world costs associated with obtaining them. The company was also charged with violating the Children’s Online Privacy Protection Rule (COPPA) by collecting personal information from children under 13 without parental consent.
Genshin Impact, a free-to-play game, generates revenue through the sale of in-game currency used to purchase loot boxes. These boxes contain random items, including the coveted five-star characters. The FTC argued that HoYoverse’s marketing tactics, including limited-time offers and influencer endorsements, created a false sense of urgency and inflated the perceived value of these items.
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The settlement requires HoYoverse to:
- Obtain parental consent for children under 16 to purchase loot boxes.
- Clearly disclose loot box odds and prices.
- Stop misrepresenting the chances of winning rare items.
- Comply with COPPA requirements.
This settlement sends a strong message to developers of the Genshin Impact that deceptive marketing practices and violations of children’s privacy will not be tolerated.
In conclusion, Genshin Impact’s developer – HoYoverse will pay a $20 million fine. Children under 16 will need parental consent to make in-game purchases. HoYoverse must improve transparency regarding loot box odds and prices. The company will be held accountable for COPPA violations. This settlement aims to protect players, especially children, from unfair and deceptive practices in the gaming industry.
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