Genshin Impact Slapped with a USD20 Million Fine
Genshin Impact, the popular open-world RPG, has been fined USD20 million (~RM89 million) by the Federal Trade Commission (FTC). This fine was imposed due to deceptive marketing practices and violations of children’s privacy. Specifically, the FTC claims that HoYoverse, the game’s developer, used “dark patterns” to mislead players. As a result, these tactics, which particularly affected children, caused players to be misled about the actual costs of in-game purchases and the chances of obtaining rare characters.
Key Accusations
- The FTC asserts that HoYoverse marketed Genshin Impact to children while collecting their personal data, which constitutes a violation of the Children’s Online Privacy Protection Act (COPPA).
- The game’s gacha system, which relies on random chance to acquire characters, was deemed excessively complex and confusing, making it difficult for players to understand the true costs involved and the probability of obtaining desired rewards.
- The FTC alleges that HoYoverse utilised “dark patterns,” such as obfuscating the true costs of in-game purchases and manipulating players into spending more than they intended.
Impact of the Settlement
- Genshin Impact will now require parental consent for children under 16 to make in-game purchases.
- Personal information of players under 13 will be deleted unless parental permission is obtained.
- The game will improve the disclosure of loot box odds, exchange rates, and the real-world value of in-game currencies.
HoYoverse Responds
HoYoverse maintains that many of the FTC’s allegations are inaccurate. However, the company agreed to the settlement to maintain player trust and enhance transparency.
Industry Implications
This settlement serves as a warning to other game developers that employ similar monetisation tactics. The FTC’s action highlights the growing scrutiny of “loot boxes” in games. Particularly, these loot boxes are a form of in-game gambling. Moreover, the focus is on how they particularly target children.
A Drop in the Bucket?
Despite the hefty fine, USD20 million is a small fraction of Genshin Impact’s massive revenue. The game has generated billions of dollars in revenue since its launch, making it one of the most successful mobile games of all time.
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