Genshin Impact Fined $20 Million in the US
It’s undeniable that we all know what Genshin Impact is and who HoYoverse is. Since its launch in 2020, this game has gained massive popularity, becoming widely recognized even among those of us who aren’t particularly drawn to the anime or gacha genre. However, after years of various controversies and shifts in popularity, even with the rise of many similar games, Genshin Impact has once again found itself in the spotlight for reasons that are not exactly positive.
As a free-to-play game, Genshin Impact’s main source of revenue has always been its gacha system, where players spend in-game currency to obtain characters and other items. The U.S. Federal Trade Commission (FTC) has identified a serious issue with this system, claiming that Genshin Impact misled children and other users about the true costs of in-game transactions as well as the actual odds of obtaining certain items. This investigation has resulted in a $20 million fine. Quite a hefty sum, right?
A $20 Million Fine and a Lot of Changes
The developer behind this hugely popular gacha game, HoYoverse, has reached an agreement with the U.S. Federal Trade Commission (FTC) to pay the $20 million fine. The violation in question falls under the Children’s Online Privacy Protection Act (COPPA), as the real costs of in-game transactions were allegedly misrepresented. To make matters worse, additional concerns were raised about the accuracy of the stated odds for obtaining rewards through the gacha system.
While HoYoverse has agreed to pay the fine, they have publicly stated that many of the FTC’s accusations “aren’t entirely accurate.” They made it clear they disagree with the U.S. agency’s decision and the reasoning behind it. However, to avoid further complications that could negatively impact both players and the market, they decided to comply and pay the substantial amount.
“Genshin Impact misled children, teenagers, and other players into spending money in the game, despite the low odds of obtaining rewards.”
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection
This agreement, which still requires approval from a federal judge, will require Cognosphere, the name under which HoYoverse operates in California and Singapore, to not only pay the fine but also implement significant changes to Genshin Impact. Once these modifications are in place, no player under the age of 16 will be able to make purchases in the game without express parental consent. All information regarding loot box exchange rates and their prices must be clearly and accurately presented so that players understand exactly how likely they are to obtain a reward.
Additionally, any information collected from players under the age of 13 must be entirely deleted from Genshin Impact’s records, except in cases where express parental consent has been previously granted. Cognosphere has publicly committed to transparency and trust with the community, especially in light of these important changes that will be gradually implemented over the coming months. For us, whether we are fans of Genshin Impact or not, it remains to be seen how these changes will truly affect players and whether other gacha games on the market will follow suit.
Now, my friend, it’s your turn. Are you a fan of gacha games? Do you play Genshin Impact? Were you aware of this controversial issue? Come on, leave your comment below. You know, gamer, we’ll be reading you! 😉
Images Source: Genshin Impact Official Website
