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The Federal Trade Commission announced a proposed $20 million settlement with the companies behind Genshin Impact on January 17, 2025. The case concerned allegations about children’s personal information, loot-box odds and costs, and in-game currency. The announcement was not proof of a court-imposed fine: the FTC said the stipulated order still needed court approval to take effect, and the available official materials do not establish whether that approval or implementation later occurred.
Who the FTC sued—and what the $20 million represents
The FTC’s case names Cognosphere LLC and Cognosphere Pte. Ltd. The agency says the companies do business in the United States as HoYoverse; it describes one as California-based and the other as Singapore-based. The FTC referred its complaint and proposed stipulated order to the Department of Justice, which filed them in the U.S. District Court for the Central District of California. FTC case record.
The $20 million was the payment agreed to in the settlement announced by the FTC—not, based on the cited announcement, a penalty already imposed by a judge. The agency said a stipulated order has force of law after a district court judge approves and signs it. The FTC’s January 17, 2025 announcement described the order as proposed and said court approval was still required. FTC announcement.
What the complaint alleged
The FTC’s allegations fall into two areas: children’s privacy and the way loot boxes and their costs were presented to players. They are allegations described by the agency, not findings established here as adjudicated facts.
#1 Best Overall
- A Max Factory import
- From the popular game Genshin Impact
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- Optional parts include a Catalyst (Skyward Atlas), an astrology effect sheet, a Mirror Reflection of Doom effect sheet and stand as well as her wallet
- Her Catalyst (Skyward Atlas) can be displayed opened or closed
Children’s information and COPPA
The FTC said the complaint alleged that Genshin Impact was marketed to children and collected personal information from users under 13 without the parental notice and consent required by the Children’s Online Privacy Protection Act (COPPA). The agency also said the complaint alleged that user IDs and persistent device identifiers were shared with analytics firms and advertisers to track gameplay-related information. FTC announcement.
Loot-box odds, currency and spending
According to the FTC, the complaint alleged that players had to buy virtual-currency bundles and move through multiple currency tiers to open loot boxes. The agency said that design could make the real-money cost of seeking a prize difficult to understand. The complaint also alleged misleading presentations of the odds of winning “five-star” prizes and promotional tactics that could give players an inaccurate impression of their chances. FTC announcement; complaint filed in federal court.
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The FTC announcement also described allegations involving limited-time Event Banners, influencer promotion and imagery appealing to children and teenagers. It said the complaint cited examples of some young players spending hundreds or thousands of dollars pursuing rare prizes. Those are complaint examples, not a measured estimate of typical player spending.
What the proposed order would require
The FTC’s January 2025 announcement outlined these proposed restrictions and obligations:
- Parental permission for younger buyers: Children under 16 would need a parent’s affirmative, express consent before purchasing loot boxes.
- A real-money purchase option: Consumers would have to be able to buy loot boxes directly with real money, rather than only through virtual currency.
- Clearer pricing and odds: The companies would have to disclose loot-box odds and exchange rates for multi-tier virtual currency, and could not misrepresent odds, prices or features.
- Children’s data: Personal information previously collected from children under 13 would have to be deleted unless parental consent to retain it were obtained.
- COPPA compliance: The companies would have to comply with the law’s notice and parental-consent requirements.
The age thresholds address different issues: under 13 relates to the privacy allegations and proposed data deletion; under 16 relates to parental consent for loot-box purchases. The FTC’s release does not establish that these proposed terms are currently in effect. FTC announcement.
Rank #3
- Genshin Impact "Ode to a Sweet Afternoon" Furina Chibi Figure
Why this matters to players and parents
The case focuses on two practical questions: whether a child’s personal information was collected with the required parental protections, and whether a player could understand the odds and real-money cost of pursuing randomized in-game prizes. The proposed direct-purchase option and exchange-rate disclosures target the second problem by making the path from dollars to loot boxes easier to see; the parental-consent terms target who can make those purchases.
Samuel Levine, then director of the FTC’s Bureau of Consumer Protection, said the action concerned alleged deception of children, teens and other players about the chances of winning prizes and the true cost of transactions. His remarks accompanied the agency’s announcement of a settlement of allegations; they are not a separate court finding.
Quick Recap
Best Value
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- High quality: all the characters are carefully crafted, bright colors will not fade
- Material: PVC environmentally friendly materials, will not release a pungent smell. And the product is flexible and not easily damaged
- Dimension:1/7 scale figure, The height is 9 in, restoring Furina's beautiful figure
- After-sales service: If you are not satisfied with our products, please don't hesitate to contact us. You will get a satisfactory solution
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- Material: PVC environmentally friendly materials, will not release a pungent smell. And the product is flexible and not easily damaged
- Dimension:1/7 scale figure, The height is 25CM, restoring Kokomi's beautiful figure
- After-sales service: If you are not satisfied with our products, please don't hesitate to contact us. You will get a satisfactory solution
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
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