Hoyoverse, publisher of Genshin Impact, has settled with the United States Federal Trade Commission, agreeing to a $20 million fine and a ban on selling loot boxes to players under 16.

In a statement, the FTC announced that Genshin Impact's developers "will pay $20 million and prohibit in-game purchases by children under 16 without parental consent" as part of the settlement.

Samuel Levine, FTC Director of the Bureau of Consumer Protection, stated that Genshin Impact "misled children, teens, and players into spending hundreds on prizes with slim chances of winning." Levine emphasized that companies using "deceptive tactics will face consequences" for misleading players, particularly young children and teens.

The FTC's primary allegations against Hoyoverse include violations of the Children's Online Privacy Protection Rule by targeting Genshin Impact at children, collecting their personal data, and misleading players about the odds and costs of winning "five-star" loot box rewards.

The FTC criticized the game's virtual currency system as confusing and unfair, obscuring the high costs players, including children, incurred to obtain "five-star prizes," with some spending hundreds or thousands of dollars.

In addition to the fine and ban, Hoyoverse must disclose loot box odds and virtual currency exchange rates, delete personal data collected from children under 13, and adhere to COPPA regulations moving forward.