Publisher Cognosphere also known as HoYoverse, widely known for their popular live service open world action role playing game Genshin Impact is in the middle of settling a class action suit for allegedly selling Loot Boxes to users under the age of 16. IGN shares that HoYoverse has agreed to pay a $20 million dollar fine for the violation and to block children under 16 from making in-game purchases without their parent’s consent as detailed in a press release released by the FTC.

The FTC alleges HoYoverse violated the Children’s Online Privacy Protection Rule  for having marketed the game to children and collecting their personal data. Another piece of the alleged violation is that players were deceived about their odds of winning “five-star” loot box prizes, and the initial cost to open a loot box in the first place.

Samuel Levine, The Federal Trade Commission Director of The Bureau of Consumer Protection had this to say “Genshin Impact deceived children, teens, and other players into spending hundreds of dollars on prizes they stood little chance of winning.” and “Companies that deploy these dark-pattern tactics will be held accountable if they deceive players, particularly kids and teens, about the true costs of in-game transactions.”

Among the $20 million dollar fine are other various changes players can expect within Genshin Impact, including; the inability to sell loot boxes with virtual currency without the option for consumers to purchase them with real money. No misrepresentation of loot box odds will be allowed. The game will be required to disclose loot box odds and exchange rates and to delete any personal information previously collected from children under thirteen unless they obtain parental consent to retain their data. Genshin Impact must comply with COPPA(Children’s Online Privacy Protection Act)including its notice and consent requirements.

HoYoverse has been willing to comply with expectations set by the FTC. The company could be making the right step by prioritizing the safety of our youth and it may yield positive results for fans of Genshin Impact.

A representative from Cognosphere has provided an statement from the company about this:

“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.”