FTC Fines HoYoverse for Selling In-Game Items to Children Without Parental Consent in Genshin Impact

The FTC has fined HoYoverse $20 million for violating children’s privacy laws and misleading players about in-game purchases in Genshin Impact.

Genshin impact hoyoverse
FTC Fines HoYoverse for Selling In-Game Items to Children Without Parental Consent in Genshin Impact | © HoYoverse

The Federal Trade Commission (FTC) has taken action against HoYoverse, the developer of Genshin Impact, for allegedly collecting personal data from children and allowing them to make in-game purchases without parental consent. The developer has agreed to a $20 million settlement, aiming to address concerns related to privacy and transparency in their monetization practices.

What Led to the Fine on HoYoverse?

According to the FTC, HoYoverse violated the Children’s Online Privacy Protection Act (COPPA) by:

  • Collecting personal data from minors: The company allegedly gathered information from children under 13 without obtaining verified parental consent.
  • Deceptive monetization practices: Players were not provided with clear odds for loot box rewards, leading to potential misleading purchases.
  • Complex in-game currency system: The use of multiple currencies in the game made it challenging for younger audiences to understand the real-world value of their purchases.

These violations resulted in the FTC filing a complaint against HoYoverse, which led to the hefty fine and mandatory changes in the company’s policies.

Settlement and HoYoverse's Response to FTC Case

As part of the settlement agreement, HoYoverse has committed to implementing several measures:

  • Paying a $20 million fine: This penalty addresses the violations related to both data collection and deceptive practices.
  • Enhanced parental controls: HoYoverse will now require explicit parental consent before allowing minors to make purchases.
  • Clearer loot box odds: The company will display detailed probabilities for loot box rewards to ensure players understand what they are purchasing.
  • Deletion of collected data: Any personal information collected from underage users without consent must be deleted promptly.

In response to the settlement, HoYoverse acknowledged the concerns and expressed its commitment to improving transparency and security for players. The company stated: "We take player privacy seriously and will implement stronger protections to ensure compliance with regulations and safeguard our younger audience."

How Does This Affect Genshin Impact Players?

Players can expect several changes in the game as a result of this settlement:

  1. Stronger age verification measures: Players under a certain age may be required to provide additional verification to continue playing or making purchases.
  2. Transparent in-game purchases: The game will now provide clear and accessible details on how much each in-game item or loot box costs in real money.
  3. Parental oversight tools: Parents will have more control over their child’s spending, ensuring that unauthorized purchases are minimized.

These changes are expected to roll out in the coming months as HoYoverse complies with the FTC's directives.

Overall, the $20 million fine imposed on HoYoverse highlights the growing concern about child safety and transparency in gaming. With new measures being introduced, Genshin Impact players can look forward to a more secure and transparent gaming experience.

Tripty Pandey

Hi guys, I'm Tripty, a lover of Gacha characters. With a true understanding and love for games like Honkai Star Rail and Genshin Impact, I like to keep an eye on the latest gaming trends in the Indian market....