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 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 FTC and HoYoverse are reportedly near a settlement that may send money out to Genshin Impact players over loot boxes.

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

The maker of the video game Genshin Impact has agreed to pay $20 million and to block children under 16 from making in-game purchases without parental consent,” a press relea