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 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."

The FTC's complaint alleges that Singapore-based Cognosphere deceived children and other users about the real costs of in-game transactions and the odds of obtaining rare prizes.

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

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

In press release by the FTC, the agency announced that the makers of Genshin Impact "has agreed to pay $20 million and to block children under 16 from making in-game purchases wit

Genshin Impact maker HoYoverse has agreed to pay $20m to settle a complaint - filed by the US Department of Justice on behalf of the Federal Trade Commission - accusing it of violating children's privacy laws and deceiving users over the true cost of obtaining rare loot box prizes.