Genshin Impact maker fined $20M over loot box deception (Update: Cognosphere statement)

Genshin Impact maker fined $20M over loot box deception (Update: Cognosphere statement)

Samsung Galaxy S22 Plus Genshin Impact

Credit: Hadlee Simons / Android Authority
  • The FTC fined Genshin Impact developer HoYoverse $20 million for misleading loot box practices and violating children’s privacy laws.
  • The game allegedly deceived players about the cost and odds of obtaining rare prizes and collected data from children under 13 without parental consent.
  • HoYoverse must now block purchases by children under 16 without parental approval, disclose loot box odds, and comply with stricter privacy rules.

Update, January 20, 2025 (12:55 PM ET): Shortly after our original article below was published, Cognosphere released a statement regarding the FTC action. It reads as follows:

“Animation-style games and shows are well-received by global audiences and players across various ages. Genshin Impact is a popular free-to-play, anime-style game designed for older teens and adults. While we believe many of the FTC’s allegations are inaccurate, we agreed to this settlement because we value the trust of our community and share a commitment to transparency for our players. Under the agreement, we will introduce new age-gate and parental consent protections for children and young teens and increase our in-game disclosures around virtual currency and rewards for players in the U.S. in the coming months.”