The Federal Trade Commission announced on Friday that Genshin Impact developer Cognosphere has agreed to a $20 million settlement and several restrictions on how it sells its loot boxes and manages children’s personal data.

Genshin Impact remains one of the most popular gacha games in the world, constantly adding new regions and characters, but now they’ve run afoul of the FTC

Kids and younger teens might soon be unable to play Genshin Impact's gachas. The developer behind the game has agreed to block players under 16 years old from making in-game purchases without parental consent in order to settle a complaint from the Federal Trade Commission.

Cognosphere, the publisher of anime-style fantasy video game "Genshin Impact," has agreed to pay $20 million to settle U.S. Federal Trade Commission allegations that the company violated a children's privacy law.

The Federal Trade Commission (FTC) announced that companies misleading players about the “true cost of in-game transactions” will be “held accountable.”

The allegation that Genshin Impact misleads children about the odds of winning "Five-Star Prizes" in part relates to the Event Banners and "influencer campaigns", which the FTC says "give players the impression that they will have better odds of obtaining the five-star prize being promoted than they have in reality."

The FTC penalized the Genshin Impact developer for misleading marketing around loot boxes and breaching child privacy laws.

The company will pay, and make changes to its disclosures

In press release by the FTC, the agency announced that the makers of Genshin Impact "has agreed to pay $20 million and to block children under 16 from making in-game purchases wit

Genshin Impact developer Cognosphere has been made to pay $20 million is banned from selling loot boxes to children under 16 without parental consent.