Genshin Impact Developer to Pay $20 Million in FTC Settlement Over Deceptive In-App Purchases

Genshin Impact Developer to Pay $20 Million in FTC Settlement Over Deceptive In-App Purchases

miHoYo, the developer of the popular gacha game Genshin Impact, will pay a $20 million settlement to the Federal Trade Commission (FTC) over allegations of deceptive in-app purchase practices, specifically targeting children and young adults.

The Federal Trade Commission (FTC) announced today a $20 million settlement with miHoYo, the Chinese developer behind the globally popular role-playing game Genshin Impact. The settlement resolves allegations that miHoYo engaged in deceptive and unfair business practices related to in-app purchases, specifically targeting vulnerable consumers, including children and young adults.

The FTC’s complaint alleges that miHoYo used deceptive design patterns, often referred to as “dark patterns,” to induce players into making unintended purchases. These patterns included misleading descriptions of in-game currencies, confusing interfaces that made it difficult to understand the costs of purchases, and the use of aggressive and persistent prompting for purchases, often disguised as seemingly innocuous actions. The complaint highlights instances where children inadvertently made substantial purchases without parental consent or knowledge, resulting in significant financial burdens on their families.

“Genshin Impact’s engaging gameplay and visually appealing design make it incredibly popular, but it also presents a high risk of financial harm for young people and their families who can easily rack up large unexpected costs,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “This settlement should send a message to game developers that employing dark patterns to trick consumers into making unwanted purchases is illegal and carries substantial consequences.”

The settlement requires miHoYo to implement significant changes to its in-app purchase practices. This includes making the costs of in-game purchases more transparent and readily understandable, simplifying the purchase process, and providing clearer and more prominent warnings to players about the potential costs associated with purchasing virtual goods. Further, miHoYo must provide refunds to consumers who were harmed by the company’s deceptive practices. The FTC will also be implementing more stringent monitoring of miHoYo’s future practices to ensure compliance with the terms of the settlement.

This landmark settlement represents a significant step by the FTC in addressing the growing concerns about deceptive practices in the mobile gaming industry. It underscores the regulator’s commitment to protecting consumers, particularly children and young adults, from unfair and deceptive business practices in the digital marketplace. The FTC is urging parents and guardians to be vigilant about their children’s in-app spending habits and to explore parental controls offered by mobile devices and gaming platforms to prevent unauthorized purchases.

The settlement is currently subject to court approval, but the FTC anticipates the process will be completed in the coming months. miHoYo has not publicly commented on the settlement at this time. The case serves as a stark reminder for game developers of their legal responsibilities to act fairly and transparently in their dealings with players.

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15 comments

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GamingMom78

About time! My kid racked up hundreds on this game without me even knowing. This settlement is a win for parents everywhere.
Glad the FTC is cracking down on these shady practices.

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xXShadowGamerXx

20 million? Pfft, that’s nothing to a company like miHoYo. They’ll just make that back in a week. They need to face way harsher penalties to really make a difference.

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TechSavvySarah

Good to see some accountability in the gaming industry. It’s crucial for developers to be more transparent about in-app purchases, especially when targeting younger audiences.
Hopefully, this will set a precedent for other companies.

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AngryParent2023

This doesn’t even begin to cover the financial damage they’ve caused families. My son is devastated he spent his savings on this game. They should be paying out far more in refunds.

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CasualGamer123

I’m glad they’re making changes. Genshin is a great game, but the in-app purchase system felt very manipulative at times.
The new system sounds much better and more transparent.

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JadedVeteran

This is just the tip of the iceberg. Many other gacha games employ similar tactics. The FTC needs to investigate the whole industry to protect vulnerable players.

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EthicalGamer87

This settlement highlights the importance of responsible game design. Developers need to prioritize ethical considerations over profit maximization. This sets a positive example for the future.

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WalletWarrior

I’m skeptical. Will miHoYo actually change its practices, or is this just a PR stunt to avoid further legal trouble?
Time will tell if this settlement actually makes a meaningful difference.

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StudentGamer99

I’m happy to see the FTC taking action. As a student, I’m more conscious of my spending habits, but many of my friends have been caught out by these types of manipulative purchases.

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Free2PlayFan

While I appreciate the FTC’s efforts, I’m concerned that the settlement might inadvertently hurt the game’s development. Hopefully, the changes won’t negatively impact the gameplay experience.

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ResponsibleGaming

This is a significant victory for consumer protection. The focus on dark patterns and their impact on children and young adults is crucial. Parents should be more aware and involved in their children’s gaming activities.

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GameDevCritic

This should be a wake-up call for all game developers. Employing deceptive practices to maximize profits is unethical and unsustainable. Transparency and player well-being should be prioritized.

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LegalEagleEye

The legal ramifications of this case are substantial. It establishes a precedent for future cases against mobile game developers who utilize manipulative in-app purchase strategies.

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WholesomeGamer

I’m glad to see that the FTC is protecting players, especially young ones. Genshin Impact has amazing potential, and making its monetization system fair and transparent will benefit both the players and miHoYo in the long run.

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ConcernedCitizen

This is a step in the right direction, but more needs to be done to address the broader issue of predatory in-app purchases in mobile games.
Regulation needs to be strengthened to safeguard consumers from such exploitative practices.