FTC Alleges That HoYoverse “Deceived” Genshin Impact Players With Loot Boxes, Settlement Reached With $20 Million Fine

The FTC has fined Genshin Impact developer HoYoverse for $20 million, alleging that HoYoverse “deceived children, teens, and other players into spending hundreds of dollars on prizes they stood little chance of winning.”

That was a quote from FTC’s director of bureau of consumer protection, Samuel Levine. He continued, “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.”

HoYoverse reached a settlement with the FTC, which seems include paying the fine, and changing how in-game transactions are handled within Genshin Impact.

In a statement regarding the settlement, HoYoverse stipulated that while agreeing to the settlement, it finds much of the FTC’s findings “inaccurate.”

“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 US in the coming months.”

Once the agreement is approved by a US federal judge, players under the age of 16 won’t be able to purchase loot boxes without their parent’s go-ahead.

HoYoverse will also need to transparently tell players what the conversion rate is for premium currency, and the odds for loot box rewards.

Source – [VGC]