Cognosphere Forced to Pay $20m
From TwogPedia
News/Cognosphere Forced to Pay $20m
Drama
20 January 2025 23:02
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.
More:Winking to Acquire Mineloader
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."
Fortnite players in the United States who believe they were misled into making unwanted in-game purchases now have another opportunity...
Drama
Jul 01, 2025
Some might embrace AI, but not everyone. The Godot Foundation moving to ban AI-authored code from its game engine cuts...
Drama
Jul 03, 2026
A hike is coming soon, Sony is pretty dismissive which means there will be a price hike. Corporate lingo is...
Drama
Jul 03, 2026
Surveillance mode on. Embark Studios openly detailing the staggering scale of data it harvests from ARC Raiders is a rare,...
Drama
Jul 02, 2026
Krafton tried to dodge it for a year. In this story bosses won the bonus but lost the company. Krafton...
Drama
Jul 02, 2026