Hoyoverse, the publisher of the popular game Genshin Impact, has reached a $20 million settlement with the Federal Trade Commission (FTC). The settlement includes a ban on selling loot boxes to users under 16 without parental consent.

The FTC's press release details the agreement, stating Hoyoverse will pay the fine and implement measures to prevent underage in-app purchases without parental authorization. FTC Bureau of Consumer Protection Director Samuel Levine criticized Hoyoverse's practices, alleging they misled players, particularly children and teens, into spending significant sums on in-game items with low odds of acquisition. He emphasized the FTC's commitment to holding companies accountable for deceptive "dark pattern" tactics.

The FTC's primary allegations against Hoyoverse center on violations of the Children's Online Privacy Protection Rule (COPPA). Specifically, the FTC contends Hoyoverse marketed Genshin Impact to children, collected their personal data without proper consent, and misrepresented the odds of winning coveted "five-star" loot box prizes, as well as the overall cost involved. The FTC further argues that the game's virtual currency system was designed to be confusing and unfair, masking the substantial financial investment required to obtain these rare items, leading to significant spending by minors.

In addition to the financial penalty and the sales restriction, the settlement mandates that Hoyoverse publicly disclose loot box odds and virtual currency exchange rates, delete personal information gathered from children under 13, and ensure future compliance with COPPA regulations.