'Genshin Impact' maker settles US charges of violating children's privacy
- Genshin Impact developer Cognosphere has agreed to a $20 million settlement with the U.S. Federal Trade Commission over its gacha loot box monetization and is now banned from selling them to teens under the age of sixteen without parental consent.
- The FTC referred a complaint to the Department of Justice over Cognosphere's unfair marketing of loot boxes to minors, obscuring their actual costs and misleading players about the odds of winning prizes.
- Cognosphere will implement measures to prevent children under 16 from making in-game purchases without parental consent as part of the settlement, which requires compliance with current COPPA rules.
- Samuel Levine, director of the FTC's Bureau of Consumer Protection, stated that '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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