HoYoverse, the developer behind Genshin Impact, has been fined $20 million and is now required to block children under the age of 16 in the United States from making in-game purchases without parental consent.
Recently, the Federal Trade Commission (FTC) accused HoYoverse of violating U.S. child privacy protection laws in Genshin Impact. Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, stated, “Genshin Impact misled children, teens, and other players into spending hundreds of dollars on rewards that they had very little chance of obtaining.”
According to the complaint filed by the U.S. Department of Justice, HoYoverse actively marketed Genshin Impact to children and collected their personal information, in violation of the Children’s Online Privacy Protection Act (COPPA). Additionally, the complaint alleged that HoYoverse misled players about the chances of obtaining “5-star” rewards and the actual amount of money needed to achieve them, due to the complex virtual currency system used for gacha mechanics. The tactics employed by HoYoverse were also criticized as being unfair to children and teens.
The FTC complaint further accused HoYoverse of obscuring the fact that players would often need to spend significant amounts of real money to obtain “5-star” rewards. Some children reportedly spent hundreds or even thousands of dollars attempting to acquire them. Players must exchange real money for bundles of virtual currency and then use various types of virtual currency (Genesis Crystals, Primogems, Intertwined Fates, Starglitter, Stardust) to participate in gacha pulls. This complex system deceived consumers regarding the true costs of each pull and the total amount needed for specific rewards.
According to Sforum, HoYoverse has paid the $20 million fine and has implemented restrictions preventing children under 16 in the U.S. from making virtual currency purchases in Genshin Impact without parental consent. You can read more about the case in the FTC’s official statement.
Source: [FTC]
