Summary: Genshin Impact developer Cognosphere (Hoyoverse) has settled with the FTC for $20 million over unfair marketing practices related to loot boxes aimed at minors. The settlement prohibits the sale of loot boxes to teens under 16 without parental consent and mandates measures to protect children from making in-game purchases. The FTC highlighted the deceptive nature of the marketing tactics that misled players about the costs and odds of winning in-game prizes.
Threat Actor: Cognosphere (Hoyoverse) | Cognosphere
Victim: Minors and their parents | Genshin Impact
Keypoints :
- Cognosphere agreed to a $20 million settlement with the FTC over misleading loot box marketing to minors.
- The company is banned from selling loot boxes to teens under 16 without parental consent.
- The FTC’s complaint also noted violations of the COPPA Rule regarding the collection of personal information from children under 13.