19 Jan 2025

FTC Fines Game Developer Cognosphere & Restricts Sale of Loot Boxes to Children

by Bonnie | | 0

The Federal Trade Commission fined Cognosphere, maker of the video game Genshin Impact, $20 million. The company agreed to pay and also to prevent in-game purchases without parental consent by children under 16.

Genshin Impact is free to download. It generates revenue from in-game purchases of such items as its virtual currency. FTC charges that Cognosphere marketed its game to children, collecting personal information from them in violation of the Children’s Online Privacy Protection Rule (COPPA). FTC further alleges that players are deceived about their chances of winning highly desired “loot boxes” and the cost of opening such boxes to win prizes, and that marketing and promotion tactics used are unfair to children.

Click here for more details from the FTC announcement.

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