Genshin Impact developer fined $20M over Loot Boxes and privacy violations

FTC fines miHoYo $20M for Genshin Impact's loot boxes and privacy breaches.

: The FTC fined Cognosphere, miHoYo's U.S. subsidiary, $20 million for deceptive gacha mechanics and privacy violations in Genshin Impact. Allegations include misleading players with gambling-like loot boxes and collecting children's data without consent. The settlement demands stricter compliance with child privacy laws and transparency in gacha mechanics. This case underscores the regulatory push against exploitative gaming practices globally.

The Federal Trade Commission imposed a $20 million fine on Cognosphere, a subsidiary of miHoYo, for deceptive marketing and privacy violations in Genshin Impact. The allegations focused on predatory gacha mechanics likened to gambling and illegal data collection from minors.

Under the settlement terms, Genshin Impact must secure parental consent for players under 16, delete illicitly collected data, and comply with the Children’s Online Privacy Protection Act. Transparency measures will inform users about pricing and odds, aiming to prevent future exploitation of vulnerable players.

This case marks a step towards greater accountability in gaming, highlighting the industry's regulatory scrutiny globally. miHoYo has acknowledged the settlement and pledged compliance, signaling a shift towards prioritizing consumer protection and ethical gaming practices.

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