The Federal Trade Commission (FTC) has fined Genshin Impact developer HoYoverse £16.24 million ($20 million) following a report accusing the company of deceptively advertising loot boxes to children.

Genshin Impact maker Cognosphere – which conducts business as HoYoverse – has agreed to pay a $20 million fine to the Federal Trade Commission (FTC), settling a case which alleges it’s misleading children over the true cost of obtaining rare gacha rewards.

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

The maker of the video game Genshin Impact has agreed to pay $20 million and make changes to address allegations by the Federal Trade Commission (FTC) that

Cognosphere, the US subsidiary of Genshin Impact developer miHoYo, agreed to a $20 million settlement over allegations of "deceptive marketing" in the game’s gacha system and violations of child privacy laws.

Genshin Impact uses loot boxes to promote in-game purchases and the financial implications were allegedly dangerous for children and teenagers. In a complaint to the FTC, the US DoJ alleged rampant use of misleading and unfair tactics.