Genshin Impact's publisher, Hoyoverse, has reached a settlement with the United States Federal Trade Commission (FTC), agreeing to a $20 million fine and a ban on selling loot boxes to teenagers under the age of 16. In a press release, the FTC announced that Hoyoverse will block children under 16 from making in-game purchases without parental consent as part of this settlement.

Samuel Levine, the Director of the FTC's Bureau of Consumer Protection, stated that Genshin Impact deceived children, teens, and other players into spending significant amounts of money on prizes with minimal chances of winning. Levine emphasized that companies using "dark-pattern tactics" to deceive players, particularly young children and teens, will be held accountable.

The FTC alleges that Hoyoverse violated the Children's Online Privacy Protection Rule by marketing Genshin Impact to children and collecting their personal information. Additionally, the FTC claims that Hoyoverse deceived players about the odds of winning "five-star" loot box prizes and the costs associated with opening loot boxes.

The FTC further criticized Genshin Impact's virtual currency system as confusing and unfair, arguing that it obscures the high costs players must pay to obtain "five-star prizes." The agency noted that children have spent hundreds to thousands of dollars in attempts to win these prizes.

As part of the settlement, Hoyoverse is required to disclose loot box odds and exchange rates for its virtual currency, delete personal information collected from children under 13, and comply with the Children's Online Privacy Protection Act (COPPA) rules going forward.