Cognosphere to Pay $20 Million, Block Children Under 16 from Genshin Impact Loot Boxes Over Deceptive Costs

Jan 17, 2025, 08:46 PM

Cognosphere, the developer behind the popular video game Genshin Impact, has agreed to pay a $20 million fine to the Federal Trade Commission (FTC) to settle allegations of misleading players regarding the costs associated with in-game purchases. The FTC's investigation revealed that the company deceived children, teens, and other players into spending substantial amounts of money on loot boxes that offered minimal chances of winning desired prizes. Additionally, the settlement mandates that Cognosphere will block users under the age of 16 from making in-game purchases without parental consent, addressing concerns about the mishandling of children's data and privacy violations. The FTC emphasized the importance of protecting young consumers in the gaming industry.