US Fines Genshin Impact Developer miHoYo $20M for Deceptive Marketing and Privacy Violations
Cognosphere, the US subsidiary of Chinese game developer miHoYo, has agreed to a $20 million settlement with the US Federal Trade Commission (FTC) over allegations of deceptive marketing and child privacy violations related to its popular game, Genshin Impact. The FTC accused the company of misleading players, particularly minors, about the odds and costs of obtaining rare items through its gacha system, which resembles gambling mechanics. Additionally, the complaint stated that the game violated the Children’s Online Privacy Protection Act (COPPA) by collecting personal data from children under 13 without parental consent and sharing it with third parties. As part of the settlement, Genshin Impact is barred from offering gacha content to players under 16 without verified parental consent. MiHoYo acknowledged some misleading practices while disputing other claims, pledging to delete improperly collected data and implement stricter age verification safeguards. This case highlights growing US regulatory scrutiny of Chinese tech firms, occurring amidst broader geopolitical tensions and recent actions against other Chinese platforms like TikTok.
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US Fines Genshin Impact Developer miHoYo $20M for Deceptive Marketing and Privacy Violations
Cognosphere, the US subsidiary of Chinese game developer miHoYo, has agreed to a $20 million settlement with the US Federal Trade Commission (FTC) over allegations of deceptive marketing and child privacy violations related to its popular game, Genshin Impact. The FTC accused the company of misleading players, particularly minors, about the odds and costs of obtaining rare items through its gacha system, which resembles gambling mechanics. Additionally, the complaint stated that the game violated the Children’s Online Privacy Protection Act (COPPA) by collecting personal data from children under 13 without parental consent and sharing it with third parties. As part of the settlement, Genshin Impact is barred from offering gacha content to players under 16 without verified parental consent. MiHoYo acknowledged some misleading practices while disputing other claims, pledging to delete improperly collected data and implement stricter age verification safeguards. This case highlights growing US regulatory scrutiny of Chinese tech firms, occurring amidst broader geopolitical tensions and recent actions against other Chinese platforms like TikTok.
TechNode