Genshin Impact, one of the most prominent titles in the world of free-to-play video games, has been criticized for its in-game economy model and the implementation of gacha mechanics. This controversy has led to the intervention of the United States Federal Trade Commission (FTC), which has demanded that Cognosphere, the game’s publisher, pay 20 million dollars for allegedly deceiving young players by inducing them to spend money on loot boxes with low chances of success.
The reason for the controversy: the children
The FTC director, Samuel Levine, expressed his concern in a statement, warning that companies using deceptive tactics and “dark patterns” will face serious consequences, especially if their model affects minors. Levine emphasized that Genshin Impact had engaged in practices that could be considered as deceiving the most vulnerable consumers.
In response to this accusation, HoYoverse accepted the FTC’s agreement, although it refuted several of the allegations. The company has emphasized its commitment to the gaming community and has pledged to implement new protection measures for younger users, as well as improve transparency in information related to virtual currencies and in-game rewards.
Additionally, the FTC has pointed out that HoYoverse did not adequately comply with the Children’s Online Privacy Protection Act (COPPA), failing to notify parents about the collection of data from children under 13 years old. As part of the agreement, Cognosphere must comply with strict regulations, including the prohibition of loot box purchases by minors under 16 without parental consent and the obligation to ensure transparency regarding the probabilities and prices of items available in the game.
