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US fines Genshin Impact game developer miHoYo $20m for alleged deceptive marketing and child privacy violations
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TechNode
Genshin Impact is now barred from offering gacha content to players under 16 without parental consent.
Why it matters: The controversy surrounding Genshin Impact has drawn attention to concerns over gacha mechanics’ similarity to gambling, potentially exploiting players and violating child protection laws.
Details: The FTC’s complaint accuses Genshin Impact of misleading loot box (gacha) practices, lack of transparency, unfair targeting of minors, and violations of child privacy laws.
Genshin Impact was classified as a child-directed online service but failed to notify parents and obtain verifiable parental consent as required by COPPA (Children’s Online Privacy Protection Act), according to the FTC.
“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.
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