The U.S. Federal Trade Commission has filed a complaint againstHoYoversefor selling loot boxes to minors, and the company is now banned from selling them to anyone under 16 years old.
HoYoverse Will Pay 20 Million Dollars
HoYoversehas reached an agreement with the U.S. Federal Trade Commission (FTC) to resolve a dispute related to microtransactions in its successful video gameGenshin Impact. As part of the agreement, HoYoverse will pay a fine of 20 million dollars and implement several changes to its monetization policies in the U.S. market.
The case focused on the sale of loot boxes in the game, a common practice in ‘gacha’ style games. While these transactions are common in the industry, U.S. authorities determined that some terms could be confusing to consumers, especially minors.
As a result of the agreement, HoYoverse commits to introducing new measures to ensure greater transparency and protection for players.
According to Samuel Levine, director of the FTC’s Consumer Protection Bureau: “Genshin Impact deceived children, teens, and other players into spending hundreds of dollars on prizes they had little chance of winning.” However, the company reiterated its commitment to comply with local regulations and build trust with its community.
“While we believe many of the FTC’s allegations are inaccurate, we accept this agreement because we value the trust of our community and share a commitment to transparency for our players,” said HoYoverse in a statement. The company added: “As part of the agreement, we will introduce new age protections and parental consent for young children and teens, and we will increase in-game information about virtual currency and rewards for U.S. players in the coming months.”
Measures and Changes HoYoverse Will Implement
According to the agreement, HoYoverse will adopt several measures in its operations in the U.S.:
Additionally, the company must comply with the Children’s Online Privacy Protection Act (COPPA), which includes deleting any personal information collected from children under 13 unless they obtain parental consent to retain it.
HoYoverse, globally known for its gacha-style games, has stated that these measures reflect its commitment to providing a safer gaming experience, particularly for younger players. This step aims to strengthen community trust and comply with local regulations, according to the developers ofGenshin Impact.
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