Cognosphere, the publisher behind the popular anime-style fantasy game “Genshin Impact,” has agreed to a $20 million settlement with the U.S. Federal Trade Commission (FTC) over allegations of violating children’s privacy laws. The company, based in Singapore, is accused of marketing loot boxes to children in a way that obscured real costs and misled players about the odds of obtaining prizes.
As part of the settlement, Cognosphere will implement changes to protect young players, including blocking children under the age of 16 from making in-game purchases without parental consent. The company also plans to introduce new age-gate features and improve transparency regarding virtual currency and rewards for U.S. players.
In a statement, Cognosphere acknowledged the settlement but contested some of the FTC’s allegations. However, the company emphasized its commitment to building trust within its community and enhancing player transparency.
