Hoyoverse, the publisher of the popular game Genshin Impact, has reached a $20 million settlement with the Federal Trade Commission (FTC). This settlement addresses allegations of deceptive practices targeting children and teenagers.

The FTC's press release details the agreement, stating Hoyoverse will pay the $20 million fine and implement restrictions on in-app purchases for users under 16. These purchases will now require parental consent.

FTC Bureau of Consumer Protection Director Samuel Levine criticized Hoyoverse's practices, stating that the company misled players, particularly children and teens, into spending significant sums on in-game prizes with low win probabilities. He emphasized the FTC's commitment to holding companies accountable for employing deceptive tactics.

The FTC's primary claims against Hoyoverse include violations of the Children's Online Privacy Protection Rule (COPPA) through the collection of children's personal information and misleading marketing. Further allegations involve deceptive representations regarding the odds of winning "five-star" loot box prizes and the actual cost of obtaining them. The FTC argued that the game's virtual currency system was confusing and unfair, leading to substantial and often unexpected spending by young players.

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