The Federal Trade Commission announced on Friday that Genshin Impact developer Cognosphere has agreed to a $20 million settlement and several restrictions on how it sells its loot boxes and manages children’s personal data.

Genshin Impact remains one of the most popular gacha games in the world, constantly adding new regions and characters, but now they’ve run afoul of the FTC

The Federal Trade Commission (FTC) announced that companies misleading players about the “true cost of in-game transactions” will be “held accountable.”

Cognosphere, the publisher of anime-style fantasy video game "Genshin Impact," has agreed to pay $20 million to settle U.S. Federal Trade Commission allegations that the company violated a children's privacy law.

The FTC penalized the Genshin Impact developer for misleading marketing around loot boxes and breaching child privacy laws.

The allegation that Genshin Impact misleads children about the odds of winning "Five-Star Prizes" in part relates to the Event Banners and "influencer campaigns", which the FTC says "give players the impression that they will have better odds of obtaining the five-star prize being promoted than they have in reality."

Genshin Impact's gacha system "deceived children, teens, and other players into spending hundreds of dollars on prizes they stood little chance of winning," the FTC said.

The maker of the video game Genshin Impact has agreed to pay $20 million and to block children under 16 from making in-game purchases without parental consent,” a press relea