Genshin Impact, a leading gacha game, faces scrutiny from the FTC regarding its revenue model, resulting in a $20 million fine. The FTC accused HoYoverse of marketing to children, violating the Children’s Online Privacy Protection Act, and misleading players about in-game transaction costs and odds of winning prizes. FTC Consumer Protection Director Samuel Levin noted that Genshin’s tactics led children and teens to spend excessive amounts of money with little chance of winning. As a consequence, new regulations will be implemented in the U.S., including age restrictions on loot box spending and clearer disclosures about the value and odds of purchases. Despite the fine, which is minor compared to the game’s earnings—over $1 billion within six months—these changes will only affect the U.S., while Asia remains unaffected. HoYoverse stated they are committed to transparency and will enhance protections for younger players.
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Genshin Impact Fined $20 Million for Misleading Gacha Practices
