Genshin Impact cover art
Parth
Gaming
1 min read

The FTC has ordered the Genshin Impact Dev team to prohibit young teens from making in-game purchases

Players under 16 may soon need parental consent to make in-game purchases in Genshin Impact, thanks to a settlement between its developer, HoYoverse, and the Federal Trade Commission (FTC). The agreement includes a $20 million penalty and several proposed measures to address concerns over deceptive practices targeting younger audiences.

The FTC’s Allegations

The FTC accused HoYoverse of violating the Children’s Online Privacy Protection Act (COPPA) by collecting personal information from players under 13 without parental consent. The commission also alleged that:

  • The game misled children and teens into spending significant amounts of money on gachas (a mechanic similar to loot boxes).
  • The odds of winning rare prizes were unclear, and the virtual currency system made spending confusing.
  • HoYoverse actively targeted children through its marketing, encouraging them to make purchases without understanding the risks.

Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, stated:

“Genshin Impact deceived children, teens, and other players into spending hundreds of dollars on prizes they stood little chance of winning.”

Proposed Settlement Measures

The settlement, pending federal court approval, includes the following requirements for HoYoverse:

  1. Parental Consent for Purchases: Players under 16 will need parental approval for in-game purchases.
  2. Transparency in Loot Boxes:
    • Odds for gachas must be clearly disclosed.
    • An option to purchase loot boxes directly with real money must be provided.
  3. Improved Privacy Protections:
    • The company must delete personal information collected from players under 13 unless obtained with proper consent.
  4. No Misrepresentation: HoYoverse cannot mislead players about loot box odds, virtual currency exchange rates, or pricing.

What’s Next?

The proposed changes won’t take effect until approved by a federal judge. However, the ruling could set a significant precedent for other game developers using similar mechanics. Personally, I think this is a very good move by the FTC. The young adult age demographic is definitely one that is impressionable, and it is important that they enjoy the engaging gameplay of Genshin Impact without having to gamble hard earned money on a whim.