Genshin Impact Settles with FTC for $20M and Ends Gacha Sales to Under 16 Players

Frequent gamers of Genshin Impact are familiar with the need to purchase in-game currency for gacha pulls to expand their character list. However, these practices for currency sales have landed the game and its developer, Hoyoverse, a substantial $20M fine by the US Federal Trade Commission alongside prohibiting gacha sales to minors.

This penalty stems from a filed grievance accusing Hoyoverse of utilizing dark pattern techniques and an “obscure and convoluted” virtual currency system to entice gamers into paying for the lottery for a five-star character via its gacha banners. The company also allegedly collected personal information from younger users in violation of the Children’s Online Privacy Protection Rule in the US.

Consequently, Hoyoverse must pay the $20M penalty to resolve the complaint and halt all virtual currency sales to users under 16 unless they obtain consent from a parent.

“Genshin Impact has mislead children, teenagers, and other players into spending significant sums on rewards which they had a slim chance of receiving,” stated FTC Bureau of Consumer Protection director Samuel Levine. “Businesses employing these dark-pattern techniques will face accountability if they misinform gamers, particularly children and teenagers, about the true costs associated with in-game purchases.”

The news of this settlement was originally sent to Bloomberg by unidentified sources who stated that the FTC and the Chinese game studio were approaching the final stages of negotiations regarding its revenue model. Initial updates suggested a possible refund for players, but that does not seem to be the scenario.