The Federal Trade Commission announced a $20 million settlement agreement with Genshin Impact’s operator in January 2025, resolving allegations about children’s privacy and how the game presented loot-box odds and spending. It was not, in the FTC’s announcement, a completed court-imposed fine: the proposed order still required approval by a federal judge, and the official sources cited here do not establish whether that approval or implementation later occurred.
Who was named and what is the case status?
The FTC named Cognosphere LLC and Cognosphere Pte. Ltd., which the agency says do business in the United States as HoYoverse. The FTC described the first entity as California-based and the second as Singapore-based. The agency announced the agreement on January 17, 2025; it referred its complaint and stipulated order to the Department of Justice, which filed them in the U.S. District Court for the Central District of California. The FTC said the order would take effect only after court approval and signature. Its case record and announcement do not establish a later ruling or current implementation, so the allegations and proposed terms should not be described as adjudicated findings or a confirmed operative order.
What did the FTC allege?
Children’s personal information
The FTC said the complaint alleged that Genshin Impact was marketed to children and collected personal information from users under 13 without the parental notice and consent required by the Children’s Online Privacy Protection Act (COPPA). The agency also said the complaint alleged that user IDs and persistent device identifiers were shared with analytics firms and advertisers to track gameplay-related information. These are allegations described by the FTC, not findings established in the cited materials.
Loot-box odds and spending
The FTC said the complaint alleged that players had to convert real money into bundles of virtual currency, then move through multiple currency tiers to open loot boxes. According to the agency, this structure could make the amount spent—and the likely real-money cost of pursuing a particular prize—difficult to understand. The complaint also alleged misleading presentations of the odds of winning five-star prizes and promotional tactics that could give players an inaccurate impression of their chances.
#1 Best Overall
- A Max Factory import
- From the popular game Genshin Impact
- Comes with three face plates, including a glaring face, surprised and an anguished face
- Optional parts include a Catalyst (Skyward Atlas), an astrology effect sheet, a Mirror Reflection of Doom effect sheet and stand as well as her wallet
- Her Catalyst (Skyward Atlas) can be displayed opened or closed
Marketing to younger players
The FTC described allegations involving limited-time Event Banners, influencer promotion, and imagery it said could appeal to children and teenagers. It also said the complaint cited examples of some young players spending hundreds or thousands of dollars while seeking rare prizes. Those are complaint examples, not a population-wide spending estimate or independently established statistic.
What did the proposed order call for?
In its January 17, 2025 announcement, the FTC said the proposed order would impose the following requirements:
- Require a parent’s affirmative, express consent before a child under 16 could purchase loot boxes.
- Prohibit selling loot boxes through virtual currency unless players also had an option to buy them directly with real money.
- Prohibit misrepresenting loot-box odds, prices, or features.
- Require disclosure of loot-box odds and exchange rates for multi-tier virtual currency.
- Require deletion of personal information previously collected from children under 13 unless parental consent to retain it was obtained.
- Require COPPA compliance, including its notice and consent requirements.
The age limits address different issues: under 13 concerns the privacy allegations and proposed data remedy, while under 16 concerns parental consent for loot-box purchases. The FTC explained that stipulated orders have force of law once approved and signed by the district court judge; the sources cited here do not confirm that step.
Rank #2
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Why is the headline often described as a $20 million fine?
The FTC’s case summary and press release describe $20 million as the agreed settlement payment or monetary penalty. In ordinary headlines, that figure may be called a fine, but the legal distinction matters: the agency announced a settlement agreement and proposed order, not a final court judgment in the materials cited here. The FTC’s Bureau of Consumer Protection Director, Samuel Levine, said the company had “deceived children, teens, and other players into spending hundreds of dollars on prizes they stood little chance of winning.” That quotation expresses the agency’s position in announcing a settlement of allegations.
Sources and status
The primary references are the FTC case record, the agency’s January 17, 2025 press release, and the complaint filed in the U.S. District Court for the Central District of California. The FTC’s release is the basis for the allegations and proposed remedies summarized above; it does not verify later court approval or operational changes.
Quick Recap
Best Value
- G-I merchandise: Game Furina characters. High quality game character sculptures for fans. Definitely a great gift for fans, desktop decorations
- High quality: all the characters are carefully crafted, bright colors will not fade
- Material: PVC environmentally friendly materials, will not release a pungent smell. And the product is flexible and not easily damaged
- Dimension:1/7 scale figure, The height is 9 in, restoring Furina's beautiful figure
- After-sales service: If you are not satisfied with our products, please don't hesitate to contact us. You will get a satisfactory solution
Rank #4
- Merchandise: Game Sangonomiya Kokomi characters. High quality game character sculptures for fans. Definitely a great gift for fans, desktop decorations
- High quality: all the characters are carefully crafted, bright colors will not fade
- Material: PVC environmentally friendly materials, will not release a pungent smell. And the product is flexible and not easily damaged
- Dimension:1/7 scale figure, The height is 25CM, restoring Kokomi's beautiful figure
- After-sales service: If you are not satisfied with our products, please don't hesitate to contact us. You will get a satisfactory solution
Rank #3
- Genshin Impact "Ode to a Sweet Afternoon" Furina Chibi Figure
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