The FTC orders Genshin Impact developers to restrict in-game purchases for young teens.
The gacha system in Genshin Impact "tricked children, teenagers, and other players into spending hundreds of dollars on rewards that had a low chance of being obtained."
A new agreement regarding Genshin Impact could restrict access for minors under 16 to in-game purchases without parental consent. This change comes after a complaint filed by the Federal Trade Commission (FTC), which has led the developer to agree to pay a $20 million fine. Samuel Levine, Director of the FTC's Bureau of Consumer Protection, stated that Genshin Impact deceived children and teenagers, as well as other players, by making them spend large sums of money on prizes with very low chances of winning.
The complaint mentions that the developer's marketing strategy actively targeted a younger audience and also violated the Children's Online Privacy Protection Act (COPPA) by collecting personal information from children under 13 years old. It was alleged that HoYoverse, the developer's entity in the U.S., misled players about the odds of winning rare prizes and used a virtual currency system that was confusing and disadvantageous for younger players. The FTC argues that this situation misleads users about the actual spending required to obtain harder-to-get rewards.
Unlike traditional loot box systems, Genshin Impact implements a gacha system, where players can "pull" from a banner to randomly win an item or character. In the proposed order by the FTC, there is an effort to prohibit the sale of loot boxes using virtual currency unless there is also an option to purchase them directly with real money. Additionally, the developer would not be allowed to misrepresent the odds and processes related to loot boxes, and they would be required to disclose the odds and the exchange rate of the virtual currency.
Furthermore, it is proposed that HoYoverse remove any personal information collected from children under 13 years old unless it was obtained with parental consent. However, it is expected that a federal judge will review and approve this agreement, meaning these measures will not be implemented immediately.