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Re:

Genshin Impact’s Developer to Pay $20 Million to Settle FTC Charges

The FTC’s proposed settlement with Genshin Impact’s developer includes a $20 million civil penalty, parental consent for loot-box purchases by children under 16, and clearer pricing and odds disclosures.
From TheFinanceBase Team2 min to read
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The Federal Trade Commission announced on January 17, 2025, that Cognosphere Pte. Ltd. and Cognosphere LLC, which do business in the United States as HoYoverse, agreed to a $20 million civil penalty and proposed changes to Genshin Impact’s loot-box purchases and disclosures. The proposed settlement would require parental consent before children under 16 buy loot boxes, while also requiring clearer real-money prices, odds and virtual-currency exchange rates. These are proposed settlement terms, not a court finding that the allegations were proven.

What the FTC alleged about Genshin Impact

The FTC described Genshin Impact as free to download and play, with revenue primarily generated by selling virtual currency. Players can use that currency to buy “Wishes,” chance-based prizes that may award characters or other in-game items. According to the complaint, players could exchange real money for currency bundles, then convert currency through multiple tiers before opening a Wish, making the real-money cost harder to follow.

The complaint also alleged that Event Banners and influencer campaigns gave players misleading impressions about their chances of receiving featured five-star prizes. Samuel Levine, then director of the FTC’s Bureau of Consumer Protection, said: “Genshin Impact deceived children, teens, and other players into spending hundreds of dollars on prizes they stood little chance of winning.” That was Levine’s characterization of the allegations, not a finding of liability.

On privacy, the FTC alleged that the companies collected personal information from children under 13 without required parental notice and consent. The complaint said the information included identifiers and persistent device-related identifiers shared with analytics firms and advertisers.

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The complaint stated that Genshin Impact had more than 120 million downloads worldwide since launch and had grossed more than $4 billion from in-game digital content. Those figures are claims made in the FTC’s 2025 complaint, not independently verified current totals or audited figures.

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What the proposed settlement would change

The FTC announcement and proposed order describe requirements covering purchases, disclosures and children’s information. The purchase-consent and privacy provisions use different age thresholds:

Issue Proposed requirement Age threshold
Loot-box purchases Block purchases unless a parent gives affirmative express consent. Children under 16
Children’s privacy Delete previously collected personal information unless parental consent is obtained to retain it, and comply with COPPA notice and consent requirements. Children under 13

The proposed order would also prohibit selling loot boxes through virtual currency without offering a direct real-money purchase option. It would prohibit misrepresenting loot-box odds, prices and features, and require disclosure of odds and exchange rates for multi-tiered virtual currency. In practical terms, the direct-price option and exchange-rate disclosures are intended to make it easier to see what a purchase costs in real money before spending.

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Were the allegations proven?

No court finding that the allegations were proven is established by the FTC materials dated January 17, 2025. The FTC case page lists the complaint, stipulation, reasons for settlement and proposed order with that date. The proposed stipulated order says the defendants neither admit nor deny the allegations. The FTC said the Department of Justice filed the complaint and stipulated order upon referral from the Commission.

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The announcement concerns a proposed stipulated settlement. The available case materials do not establish a later court-entry date, so they do not support saying when the order became effective. They also do not establish the current in-game age checks, parental-consent process or disclosure screens.

Quick Recap

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Sources and case documents

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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