January 18, 2025
Cognosphere, the developer behind the popular game Genshin Impact, has agreed to a $20 million settlement with the U.S. Federal Trade Commission (FTC) to resolve allegations concerning deceptive marketing of loot boxes and violations of children's privacy laws.
The FTC accused Cognosphere of misleading players about the odds of winning prizes from loot boxes and the actual costs associated with in-game transactions. Additionally, the company was found to have collected personal information from children under 13 without obtaining parental consent, breaching the Children's Online Privacy Protection Rule.
As part of the settlement, Cognosphere is required to delete all data collected from children without proper consent. The company must also provide an option for players to purchase loot boxes directly, bypassing the use of virtual currency, and ensure that all pricing, features, and odds of winning for loot boxes are clearly disclosed to players.
This settlement underscores the FTC's commitment to protecting consumers, particularly minors, in the gaming industry. It also highlights the increasing scrutiny of in-game monetization practices and the importance of transparency and ethical marketing in the gaming sector.
0 Comments