Hoyoverse, the publisher behind the popular game Genshin Impact, has reached a significant settlement with the United States Federal Trade Commission (FTC). As part of this agreement, Hoyoverse will pay a hefty fine of $20 million and will be prohibited from selling loot boxes to players under the age of 16 without parental consent. This decision was highlighted in an FTC press release, emphasizing the company's commitment to cease such practices and protect younger audiences.

Samuel Levine, the Director of the FTC's Bureau of Consumer Protection, criticized Hoyoverse for misleading children, teens, and other players. He stated that the company deceived players into spending substantial amounts of money on prizes that were difficult to win, labeling these as "dark-pattern tactics." Levine stressed that such practices would not be tolerated, particularly when they target young and vulnerable audiences.

The FTC's allegations against Hoyoverse include violations of the Children's Online Privacy Protection Rule (COPPA). They claim that Hoyoverse marketed Genshin Impact to children, collected their personal information without proper consent, and misled players about the odds of winning high-value "five-star" loot box prizes. The FTC also criticized the game's virtual currency system as confusing and unfair, noting that it obscured the true cost of obtaining these prizes, leading to children spending hundreds to thousands of dollars.

In addition to the fine and the ban on selling loot boxes to minors without consent, Hoyoverse is required to take several corrective actions. These include disclosing the odds of winning loot box prizes and the exchange rates for its virtual currency, deleting personal information collected from children under 13, and ensuring compliance with COPPA regulations moving forward.