Official Genshin Impact Game Developer Will be Banned from Selling Lootboxes to Teens Under 16 without Parental Consent

[Sphinx]

The maker of the video game Genshin Impact has agreed to pay $20 million and to block children under 16 from making in-game purchases without parental consent to settle Federal Trade Commission allegations the company violated a children’s privacy law and deceived children and other users about the real costs of in-game transactions and odds of obtaining rare prizes.

“Genshin Impact deceived children, teens, and other players into spending hundreds of dollars on prizes they stood little chance of winning,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Companies that deploy these dark-pattern tactics will be held accountable if they deceive players, particularly kids and teens, about the true costs of in-game transactions.”

The complaint alleges that Genshin Impact’s purchasing process obscures the reality that consumers commonly must spend large amounts of real money to obtain “five-star prizes,” and that some children have spent hundreds or even thousands of dollars to win them. The complaint alleges that the system is challenging and confusing, particularly for children and teens. Players must exchange real dollars for bundles of virtual currency that then have to be re-exchanged multiple times to open loot boxes, with exchange rates in unusual denominations. This complicated system, according to the complaint, misleads consumers about the amount of money that players spend on loot boxes on an ongoing basis, and the amount of money that players would likely need to spend to obtain certain prizes.

Full Report: Genshin Impact Game Developer Will be Banned from Selling Lootboxes to Teens Under 16 without Parental Consent, Pay a $20 Million Fine to Settle FTC Charges