The developers of Genshin Impact have agreed to pay a fine of $20 million (approximately £16.4 million) to settle charges brought by the US Federal Trade Commission. The FTC alleges that HoYoverse “fraudulently sold loot boxes to children, thereby concealing the actual costs and misleading all players as to their chances of winning prizes.” HoYovers will also be banned from selling loot boxes to children under 16 without parental consent.
The complaint (PDF) claims that Genshin Impact’s maze of different currencies is “difficult and confusing, especially for children and teenagers.”
“Players must exchange real dollars for bundles of virtual currency, which must then be exchanged multiple times to open loot boxes, at exchange rates in unusual denominations. According to the complaint, this convoluted system misleads consumers about the amount players spend on loot boxes on an ongoing basis and the amount players would likely have to spend to earn certain rewards.
The same complaint also alleges that HoYoverse collected children’s personal information in violation of the Children’s Online Privacy Protection Act (COPPA).
The allegation that Genshin Impact misleads children about their chances of winning “Five-Star Rewards” partly refers to the event’s banners and “influencer campaigns,” which the FTC says “give players the impression that they will have a greater chance of winning five-star rewards.” the star reward is promoted more than it actually is.”
The ruling, which will require HoYoverse to pay a fine, delete data related to children under 13 and stop selling lootbnox to children under 16, requires approval from a federal judge before it takes effect.
“Genshin Impact deceived children, teenagers and other gamers into spending hundreds of dollars on prizes they had little chance of winning,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection in press release. “Companies using these dark pattern tactics will be held accountable if they deceive gamers, especially children and teenagers, about the true costs of gaming transactions.”
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