Cognosphere, the publisher of the popular anime-style fantasy video game "Genshin Impact," has agreed to pay $20 million to settle allegations brought by the U.S. Federal Trade Commission (FTC). The FTC accused the company of violating a children's privacy law.
FTC Allegations
The FTC alleged that Cognosphere, based in Singapore, unfairly marketed loot boxes to children, obscuring the real costs and misleading all players about the odds of obtaining prizes. The game, developed by Chinese company MiHoYo, was also cited for failing to protect the privacy of child users.
Settlement Terms
As part of the settlement, Cognosphere has agreed to:
- Pay $20 million in fines.
- Block children under the age of 16 from making in-game purchases without parental consent.
- Introduce new age-gate and parental consent protections for children and young teens.
- Increase in-game disclosures around virtual currency and rewards for players in the U.S.
Cognosphere's Response
In a statement, Cognosphere said, "While we believe many of the FTC's allegations are inaccurate, we agreed to this settlement because we value the trust of our community and share a commitment to transparency for our players." The company will implement the new protections and disclosures in the coming months.
