‘Genshin Impact’ publisher settles US lawsuit for violating children’s privacy

By Kanishka Singh

WASHINGTON (Reuters) – Cognosphere, the publisher of the anime-style fantasy video game “Genshin Impact,” has agreed to pay $20 million to settle allegations by the U.S. Federal Trade Commission that the company violated the Children’s Privacy Act.

It also prevents children under 16 from making in-game purchases without parental consent, the FTC said.

The FTC accused Singapore-based Cognosphere of unfairly marketing loot boxes to children that obscured true costs and misled players about the potential for winning prizes.

The game is developed by Chinese developer Mihoyo.

“While we believe many of the FTC’s allegations are unfounded, we agreed to this settlement because we value the trust of our community and share a commitment to transparency for our players,” Cognosphere said in a statement.

The company said it will introduce new age gates and parental consent protections for children and teens, and increase in-game disclosures around virtual currency and rewards for players in the US in the coming months.