Cognosphere to pay $20m to settle FTC complaint on Genshin Impact
Genshin Impact distributor Cognosphere has agreed to pay $20 million to settle charges made by the US Federal Trade Commission.
In a complaint filed on January 17, 2025, in the United States District Court for the Central District of California, the FTC alleged that Cognosphere violated the Children's Online Privacy Protection Act (COPPA) and deceived users about the cost of in-game transactions.
The FTC claimed that Cognosphere pushed the marketing of Genshin Impact towards children under 13 and collected personal information without parental consent, which goes against the COPPA.
It also alleged that Cognosphere "deceived players about the odds of winning" loot box prizes and that the purchasing process for in-game currency is too confusing for consumers. It claimed this misleads players regarding "the amount of money that would likely need to be spent to obtain certain prizes."
Under the proposed order, Cognosphere is required to adhere to changes outlined in the complaint including the prohibition of selling loot boxes to children under 16 without parental consent and rectify the misrepresentation of loot box odds, prices, and features.
In response to the complaint, Cognosphere said that while it believed "many of the FTC's allegations are inaccurate," it agreed to the settlement because it "values the trust of [its] community and shares a commitment to transparency for [its] players."
"Under the agreement, we will introduce new age-gate and parental consent protections for children and young teens and increase our in-game disclosures around virtual currency and rewards for players in the US in the coming months," it said.
Director of the FTC's Bureau of Consumer Protection Samuel Levine added: "Genshin Impact deceived children, teens, and other players into spending hundreds of dollars on prizes they stood little chance of winning.
"Companies that deploy these dark-pattern tactics will be held accountable if they deceive players, particularly kids and teens, about the
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