Genshin Impact's publisher, Hoyoverse, has reached a significant settlement with the United States Federal Trade Commission (FTC), agreeing to a $20 million fine and implementing a ban on selling loot boxes to individuals under the age of 16. According to an FTC press release, Hoyoverse has committed to this payment and to prevent children under 16 from making in-game purchases without parental consent as part of this agreement.

Samuel Levine, Director of the FTC's Bureau of Consumer Protection, stated that Genshin Impact misled its young audience and other players, leading them to spend significant sums of money on prizes with minimal chances of winning. Levine emphasized that companies employing "dark-pattern tactics" would face accountability, particularly when it comes to deceiving young players.

The FTC's primary allegations against Hoyoverse include violations of the Children's Online Privacy Protection Rule. They claim that Hoyoverse marketed Genshin Impact to children, collected their personal information, and misled players about the probabilities of obtaining "five-star" loot box prizes and the costs associated with opening these loot boxes. The FTC argues that the virtual currency system within Genshin Impact is designed in a way that confuses players and obscures the true cost of acquiring these high-value items, leading to children spending hundreds to thousands of dollars in pursuit of these prizes.

As part of the settlement, Hoyoverse is required not only to pay the fine and enforce the ban on loot box sales to minors but also to disclose the odds of winning loot box prizes and the exchange rates for its virtual currency. Additionally, they must delete personal information collected from children under 13 and adhere to the Children's Online Privacy Protection Act (COPPA) rules moving forward.