Genshin Impact Publisher Settles with FTC: Million Fine and Lootbox Ban
Genshin Impact publisher Hoyoverse has reached a settlement with the United States Federal Trade Commission (FTC) after facing allegations of deceptive practices. As part of the settlement, Hoyoverse will pay a million fine and will be prohibited from selling lootboxes to teenagers under the age of 16 without parental consent. The FTC accused the developer of misleading players, especially young children and teens, into spending significant amounts of money on lootboxes with little chance of winning valuable prizes. In addition to the fine and ban, Hoyoverse will be required to disclose lootbox odds, delete personal information collected from children, and comply with the Children’s Online Privacy Protection Rule (COPPA).
– Genshin Impact publisher Hoyoverse has agreed to pay a million fine and be banned from selling lootboxes to teenagers under 16 as part of a settlement with the United States Federal Trade Commission.
– The FTC accused Hoyoverse of deceiving young players into spending large amounts of money on lootboxes with little chance of winning valuable prizes.
– In addition to the fine and ban, Hoyoverse will have to disclose loot box odds, delete personal information collected from children under 13, and comply with COPPA rules moving forward.
Genshin Impact publisher, Hoyoverse, has reached a settlement with the United States Federal Trade Commission (FTC), agreeing to pay a substantial million fine. This settlement also includes a ban on the sale of lootboxes to teenagers under the age of 16. The FTC made the announcement through a press release, detailing that Hoyoverse has agreed to the fine and the implementation of measures to prevent children under 16 from making in-game purchases without parental consent.
Samuel Levine, the Director of the Bureau of Consumer Protection at the FTC, expressed concerns that Genshin Impact had deceived young players into spending significant amounts of money on prizes that had low chances of being won. Levine emphasized the importance of holding companies accountable when they employ manipulative tactics, particularly when targeting vulnerable demographics such as children and teenagers.
The FTC brought several charges against Hoyoverse, alleging violations of the Children’s Online Privacy Protection Rule. They argued that the developer had marketed Genshin Impact to children and collected their personal information without appropriate consent. Additionally, the agency claimed that players were deceived about the odds of winning highly sought-after “five-star” loot box prizes, as well as the actual cost of opening these loot boxes. The FTC highlighted the confusing and unfair virtual currency system employed in the game, contending that it obscured the true extent of the expenses required to obtain these valuable prizes. Disturbingly, the FTC discovered instances where children had spent hundreds, and in some cases even thousands, of dollars attempting to secure these desirable in-game items.
Aside from the monetary fine and the ban on selling lootboxes to teenagers, Hoyoverse will now be obligated to disclose loot box odds and exchange rates for its virtual currency. The publisher is also required to delete any personal information collected from children under the age of 13 and ensure compliance with the Children’s Online Privacy Protection Act (COPPA) moving forward.
This settlement is a significant development in the ongoing efforts to protect players, especially children, from potentially exploitative practices within the gaming industry. With the FTC actively holding companies accountable for deceptive practices, it sends a strong message to the industry that such behavior will not be tolerated.
As Genshin Impact continues to capture the attention and wallets of players worldwide, it is crucial that publishers and developers adopt responsible practices. Transparency regarding the odds and costs associated with in-game purchases should be a standard practice to ensure informed decision-making by players. This settlement serves as a reminder to the industry that consumer protection, particularly when targeting young audiences, must be a top priority.
In conclusion, Hoyoverse’s agreement to pay a million fine and adhere to restrictions regarding lootbox sales to teenagers is a significant step in protecting young players and holding companies accountable for unfair practices. Moving forward, increased transparency and compliance with regulations, such as COPPA, will be essential for maintaining consumer trust in the gaming industry.
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