HoYoverse Fined $20 Million by FTC Over Genshin Impact Loot Boxes

HoYoverse, the publisher behind Genshin Impact, just got served! After a showdown with the Federal Trade Commission (FTC), the company has been slapped with a $20 million settlement for its controversial loot box mechanics. Turns out, selling these digital goodies to teens without proper safeguards doesn’t sit well with the law.

Here’s the full breakdown of this legal saga, from shady loot boxes to strict new rules.

‘Genshin Impact Deceived Kids,’ Says FTC

The FTC teamed up with the Department of Justice to take on HoYoverse, claiming the company used sneaky tactics to get teens (and even kids) to spend big bucks chasing rare in-game prizes.

Samuel Levine, FTC’s Consumer Protection Boss, Spills the Tea

Levine didn’t hold back in a statement:

    “Genshin Impact deceived children, teens, and other players into spending hundreds of dollars on prizes they stood little chance of winning. Companies that use these dark-pattern tactics will be held accountable, especially when they target kids and teens.”

For those unfamiliar, “dark patterns” refer to sneaky design tricks used to pressure players into spending more money—something HoYoverse baked into their free-to-play business model.

 

 

HoYoverse Responds

HoYoverse, the creators of Genshin Impact, didn’t outright admit guilt but did agree to the settlement. In their statement, the company said:

    “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 value our community’s trust and are committed to transparency.”

They also promised to roll out age-gates, parental consent systems, and better disclosures about loot box odds in the U.S.

What Did HoYoverse Do Wrong?

Besides shady loot box mechanics, HoYoverse also violated COPPA (Children’s Online Privacy Protection Act). They allegedly failed to:

• Notify parents about the personal data they collected from kids under 13.
• Obtain proper parental consent before collecting this data.

New FTC Rules for HoYoverse

The FTC has laid down some strict terms to prevent any future slip-ups:

1. No Loot Boxes for Kids Under 16 Without Parental Consent: Teens and kids can no longer buy loot boxes without mom or dad’s okay.
2. Real Money Options Required: Virtual currency can no longer be the only way to buy loot boxes—there has to be a real-money option too.
3. No Lying About Loot Box Odds: Odds, prices, and features must be crystal clear.
4. Full Transparency on Odds and Exchange Rates: HoYoverse has to spill all the details on loot box odds and multi-tiered virtual currency.
5. Delete Data Collected From Kids: Unless they get parental consent, all data collected from kids under 13 must be deleted.
6. Comply with COPPA: HoYoverse must follow all notice and consent rules moving forward.

The Road Ahead

While this legal smackdown is a win for players and parents alike, it’s also a wake-up call for the gaming industry. With more transparency, players can finally get the full story behind those shiny five-star prizes.

So, next time you log into Genshin Impact, you might just notice a more player-friendly vibe—or at least, some new rules in place. Let’s see how this plays out!