Cognosphere, the developer of the video game “Genshin Impact,” has agreed to a US$20 million settlement with the US Federal Trade Commission (FTC) regarding allegations of violating children’s privacy laws.

The FTC accused the company of misleading players, particularly children, about in-game purchases.

The FTC claimed that Cognosphere marketed loot boxes to minors while failing to disclose real costs and the odds of winning prizes.

The settlement will require the company to block users under 16 from making in-game purchases without parental consent.

This resolution, announced on Jan. 17, involves both financial penalties and new policy measures to address the raised concerns.