US FTC fines HoYoverse $20 million over Genshin Impact’s monetization practices

Story Highlights

• US FTC claims that HoYoverse has allegedly marketed loot boxes to children unfairly.
• US FTC also claims HoYoverse has misled players about loot box costs and prize odds.
• HoYoverse has agreed to pay $20 million fine and to block children under 16 from making in-game purchases without parental consent.

The U.S. Federal Trade Commission has imposed a penalty of $20 million and is on the verge of reaching an agreement with Hoyoverse, the company behind Genshin Impact, due to allegations that the game’s monetization tactics could be misleading, especially for younger players. The focus of the investigation was primarily on its loot box system (gacha), where players can spend real money in the hope of receiving rare in-game characters or items.

FTC imposes a fine of $20 million fine on HoYoverse for its deceptive Gacha System

The U.S. Federal Trade Commission has penalized Cognosphere, makers of the widely played game Genshin Impact, with a fine worth $20 million, for deceiving players regarding the expenses and probabilities linked to in-game loot boxes. The FTC’s investigation uncovered that the game’s intricate virtual currency system concealed the true monetary impact of purchasing items when played in reality.

This situation encourages gamers, even minors, to invest substantial sums without fully grasping the possible outcomes. This agreement emphasizes the Federal Trade Commission’s dedication to shielding consumers from misleading online earning tactics, especially those aimed at younger demographics.

New Regulations mandate Parental Consent for IAPs made by Minors

In compliance with the agreement made with the FTC, Cognosphere is now enforcing robust mechanisms to ensure that children under 16 years old cannot make in-game purchases unless their parents have given explicit approval. This move aims to alleviate worries about Genshin Impact’s attractive graphics and youthful characters potentially enticing younger players who might not fully understand the financial implications of in-app spending.

To secure a child-friendly gaming atmosphere, the FTC plans strict regulations on monetization methods used by game developers, potentially influencing the entire video game industry. The uproar about Genshin Impact centers on its gacha system, where players use real money to buy virtual currency that can be exchanged for random in-game items or characters.

Players question fairness in Gacha Game Policies

The fine imposed on Genshin Impact developer Cognosphere has ignited a heated discussion among gamers, with many questioning the FTC’s impartiality and fairness. A common theme in these discussions is the apparent inconsistency in targeting Chinese companies like Cognosphere while seemingly ignoring Western gaming giants such as EA, whose loot box practices in FIFA are often criticized for being exploitative.

Critics claim that FIFA’s system, which has unclear chances less than 1%, and insufficient transparency for individual items, presents a much larger danger to consumers compared to the published drop rates and strict pity system in Genshin Impact.

Final Thoughts

The FTC’s move against Genshin Impact underscores increasing worries about honesty and fairness in loot boxes, known as gacha systems. This agreement for tighter rules aims to safeguard consumers, particularly young ones, but it also prompts questions about uniformity in regulation across the gaming sector.

There’s been a growing demand among many gamers for a fair examination of Western game developers who employ questionable business practices that are just as exploitative, if not more so. This situation could potentially signal a shift in the way governments oversee digital monetization within games, with an increased focus on ensuring fairness and responsibility from all involved parties.

Read More

• RSR PREDICTION. RSR cryptocurrency
• Demi Moore’s incredible comeback after being branded a ‘popcorn’ actress: Star wins first ever major gong at the Golden Globes after her career floundered in the late ’90s – and she looks better than ever at 62!
• Christina Haack reveals how she got ‘back on track’ with ex Ant Anstead amid explosive Josh Hall divorce
• Federal court decision won’t change California net neutrality law
• Nicole Kidman’s raunchiest scenes yet! Wild moment actress licks milk off a plate before co-star Harris Dickinson sucks her lip in Babygirl
• Forza Horizon 3 Servers Have Been ‘Rebooted’ Abating Shutdown Fears
• WIF PREDICTION. WIF cryptocurrency
• Lala Kent says her newborn was ‘struggling to breathe’ due to poor air quality amid LA fires
• BBC’s Clive Myrie issues health update as viewers express concern
• Blue Lock season 3 potential release date, cast, plot, trailer and everything you need to know

2025-01-18 19:41