miHoYo Fined for “Deceptive Practices” Regarding Minors
Recently, miHoYo, the developer behind the blockbuster Genshin Impact, has been ordered to pay a fine of $20 million to resolve complaints from the Federal Trade Commission (FTC). According to reports, the organization accused miHoYo of “violating the privacy rights of minors and deceiving users about costs associated with their transactions.”
Samuel Levine, the director of the FTC’s Bureau of Consumer Protection, stated: “Genshin Impact has exploited minors, causing them and other players to spend hundreds of dollars on rewards that have little chance of winning.” He emphasized that not only miHoYo, but all companies operating in this sector must “take responsibility if they mislead players, especially minors, regarding the actual costs of transactions.”
Additionally, the complaint alleges that miHoYo failed to comply with the Children’s Online Privacy Protection Act (COPPA), which requires online services and websites aimed at children under 13 to notify parents about the personal information collected from their children. Furthermore, explicit parental consent must be obtained before collecting and using any personal information from minors.
miHoYo Responds to Allegations and Accepts Fine
In response to the FTC’s allegations, miHoYo does not admit to any wrongdoing regarding Genshin Impact, which is described as a free-to-play game designed for both older minors and adults. Despite this, the company has agreed to pay the $20 million fine, stating: “While we believe that many of the FTC’s allegations are inaccurate, we have agreed to this settlement because we value the trust of our community and are committed to transparency for our players.”
miHoYo also confirmed that it will introduce measures to better protect younger users, restricting access for those under 16 to purchase in-game items without clear parental consent. Specifically, in the United States, miHoYo will implement stricter controls on transactions and pricing for in-game purchases in Genshin Impact. Additionally, the company will be required to delete any personal information collected from users under 13 before obtaining explicit parental consent.
