Genshin Impact Developer HoYoverse Required to Disclose Gacha Banner Odds In US FTC Settlement Accusing Developers of Exploiting Players - Updated
It’s an open secret that modern gacha games are exploitative, but for the first time, we’re seeing the American government push back against one of the biggest proponents. A newly published settlement between the FTC and HoYoverse, developer of Genshin Impact and Zenless Zone Zero among others, targets HoYoverse’s unchecked permissions for children to play and exploitative microcurrency systems—but its gacha requirements might be literally game-changing.
The more widely-discussed parts of the settlement out there are a $20 million fine, which is massive in theory but small fry compared to what many believe the company makes, and the actions to protect children.
The FTC believed and claimed HoYoverse was collecting information of those under 18 in violation with the Children’s Online Privacy Protection Rule, one of the oldest online protection laws in America. HoYoverse games, indeed, were found to not be collecting the age of its players to ensure underage players weren’t engaging. (Children quite often lie about that, but that’s besides the point.) They were also found to be ignoring posts where users explicitly claimed they were under 13 (which has also unfortunately become common) and taking appropriate action, such as restricting social media access to those players. Known data about under-13 players will be required to be deleted.
However, the biggest change may actually be good for its entire player base’s gambling health: HoYoverse will be forced to unveil its odds for rolling items within loot boxes. The FTC accused HoYoverse of deceptive practices to its users,
As a result, the settlement requires HoYoverse to disclose in all of its games:
- The likelihood a consumer will obtain any digital content or merchandise prominently featured or depicted at the point of sale via a Covered Mechanism, or in the promotion of digital content or merchandise accessible by a Covered Mechanism, placed in Close Proximity to the digital content or merchandise featured or
