The Federal Trade Commission announced on Friday: genshin impact Developer Cognosphere has agreed to a $20 million settlement with several restrictions on how it sells loot boxes and manages children’s personal data. According to the FTC, the company “aggressively marketed” loot boxes to children and misled players about their odds of winning prizes.
Cognosphere also allegedly “deceived children and other users about the true cost of in-game transactions” by requiring them to purchase virtual currency associated with multiple currency exchanges. According to Consumer Protection Director Samuel Levine, players often “spended hundreds of dollars on prizes with little chance of winning.” For years, loot boxes have been likened to a form of legal gambling.
The complaint filed by the Justice Department also accuses: genshin impact Developers who market to children using approaches such as social media channels and in-game banner posts. It was later revealed that the company had collected personal information in violation of children’s online privacy protection regulations. If the settlement is approved, the company will be required to delete data from children under 13 whose parents have not consented to data collection.
Other requirements of the agreement include that Cognosphere must offer the option to purchase loot boxes directly as well as virtual currency. Additionally, it is prohibited to misrepresent the price, features, or winning odds of loot boxes, and the exchange rates for multi-level virtual currencies must be disclosed.









