The FTC’s Eye on Genshin Impact
In a striking move, the Federal Trade Commission (FTC) has imposed a hefty $20 million fine on Cognosphere, the publisher of the wildly popular game Genshin Impact. The fine comes as a response to allegations of violations under the Children’s Online Privacy Protection Act (COPPA), with claims that the company actively marketed to children while misleading players about the costs of in-game transactions.
Why This Matters
Sam Levine, director of the FTC’s Bureau of Consumer Protection, stated, “Genshin Impact deceived children, teens, and other players into spending hundreds of dollars on prizes they stood little chance of winning.” This serves as a crucial wake-up call not just for Cognosphere, but for all game developers about the importance of ethical marketing practices.
What’s Next for Genshin Impact?
In addition to the fine, Cognosphere has committed to blocking children under the age of 16 from making in-game purchases without parental consent. While they argue that many allegations are inaccurate, the gaming community watches closely as the company reshapes its design to avoid ‘dark patterns’—manipulative design elements that mislead users.
The settlement, pending judicial approval, signals a significant shift in how gaming companies must approach their audiences, especially the younger ones. It’s clear that the FTC will not shy away from holding companies accountable for deceptive practices, making it crucial for the industry to evolve in a way that prioritizes transparency and informs players of their spending adequately.
