Cognosphere, the distributor of Genshin Impact, has agreed to pay $20 million to settle charges filed by the US Federal Trade Commission (FTC). The FTC's complaint, filed on January 17, 2025, in the United States District Court for the Central District of California, accused Cognosphere of violating the Children’s Online Privacy Protection Act (COPPA) and misleading players about the cost of in-game purchases.
The FTC claimed that Cognosphere targeted children under 13 with Genshin Impact marketing and collected personal information without parental consent, violating COPPA. It also alleged that the company misled players about the odds of winning loot box prizes and made the in-game currency purchasing process confusing, leading to misunderstandings about the costs involved in obtaining certain prizes.
As part of the proposed settlement, Cognosphere is required to implement changes to address the issues raised in the complaint. This includes prohibiting the sale of loot boxes to children under 16 without parental consent and correcting the misrepresentation of loot box odds, prices, and features.
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In response to the complaint, Cognosphere stated that while it believed "many of the FTC's allegations are inaccurate," it agreed to the settlement because it "values the trust of [its] community and shares a commitment to transparency for [its] players."
"Under the agreement, we will introduce new age-gate and parental consent protections for children and young teens and increase our in-game disclosures around virtual currency and rewards for players in the US in the coming months," the company said.
Samuel Levine, Director of the FTC's Bureau of Consumer Protection, commented: "Genshin Impact deceived children, teens, and other players into spending hundreds of dollars on prizes they stood little chance of winning."
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