HoYoverse Fined $20 million by FTC
FTC announced that HoYoverse was fined $20 Million.
FTC explained on its official site that the creator of the game Genshin Impact, HoYoverse, was fined for allowing children under 16 to purchase in-game items without parental permission.
This led to HoYoverse being considered in violation of rules that protect children and also accused of misleading them and other users regarding the actual costs involved in game transactions and the chances of obtaining rare rewards.
Thus, the Genshin Impact company faces a fine of $20 million and must make changes and respond to existing complaints. The rules from the FTC that HoYoverse must follow include:
- Prohibition on allowing children under 16 to purchase Loot Boxes without parental consent.
- Prohibition on selling Loot Boxes with virtual currency without providing an option to buy directly using real money.
- Prohibition on misleading regarding the chances, prices, and features of Loot Boxes.
- Must clearly disclose the chances of Loot Boxes and the exchange rates for virtual currency.
- Required to delete all personal information previously collected from children under 13, unless parental consent has been obtained.
- Must comply with COPPA, including in terms of notice and consent.
After the FTC announcement, HoYoverse responded regarding the violations and fines. They explained that Cognosphere, which is the distributor of Genshin Impact, has agreed to resolve this issue with the FTC. They are committed to strengthening and enhancing transparency regarding parental consent and practices related to the value of virtual currency.
"Games and animated style shows are well received by global audiences and players of all ages. Genshin Impact is a popular free anime-style game designed for teens and adults. While we believe that many of the FTC's allegations are inaccurate, we agree to this settlement because we value the trust of our community and share the same commitment to transparency for our players. Based on this agreement, we will introduce new age restrictions and parental consent protections for children and teenagers, as well as enhance in-game disclosures regarding virtual currency and rewards for players in the U.S. in the coming months."
