The Federal Trade Commission announced on Friday that Genshin Impact developer Cognosphere has agreed to a $20 million settlement and several restrictions on how it sells its loot boxes and manages children’s personal data.

The Federal Trade Commission (FTC) announced that companies misleading players about the “true cost of in-game transactions” will be “held accountable.”

The FTC penalized the Genshin Impact developer for misleading marketing around loot boxes and breaching child privacy laws.

The developer behind the popular video game Genshin Impact, Cognosphere Pte. Ltd., has agreed to a $20 million settlement with the

Genshin Impact developer Cognosphere (aka Hoyoverse) has agreed to a $20 million settlement with the U.S. Federal Trade Commission (FTC) over its gacha loot box monetization and is now banned from selling them to teens under the age of sixteen without parental consent.

The company will pay, and make changes to its disclosures

The allegation that Genshin Impact misleads children about the odds of winning "Five-Star Prizes" in part relates to the Event Banners and "influencer campaigns", which the FTC says "give players the impression that they will have better odds of obtaining the five-star prize being promoted than they have in reality."

The US Federal Trade Commission is preparing to settle with the company behind the popular video game Genshin Impact over concerns that the money-making mechanics of the game were deceptive, according to people with knowledge of the matter.

The maker of the video game Genshin Impact has agreed to pay $20 million and to block children under 16 from making in-game purchases without parental consent,” a press relea

In press release by the FTC, the agency announced that the makers of Genshin Impact "has agreed to pay $20 million and to block children under 16 from making in-game purchases wit