{"id":8191,"date":"2025-01-22T11:42:56","date_gmt":"2025-01-22T11:42:56","guid":{"rendered":"https:\/\/sbceurasia.com\/en\/?p=8191"},"modified":"2025-01-22T11:43:01","modified_gmt":"2025-01-22T11:43:01","slug":"genshin-impact-developer-can-faces-20-million-fine-over-loot-boxes","status":"publish","type":"post","link":"https:\/\/sbceurasia.com\/en\/2025\/01\/22\/genshin-impact-developer-can-faces-20-million-fine-over-loot-boxes\/","title":{"rendered":"Genshin Impact Developer Can Faces $20 Million Fine Over Loot Boxes"},"content":{"rendered":"\n

The developer of the popular video game Genshin Impact<\/strong> could face a fine of up to $20 million<\/strong> in the United States for using loot boxes.<\/p>\n\n\n\n

Video game developer Cognosphere LLC <\/strong>and its subsidiary Cognosphere Pte. Ltd.<\/strong> have been fined by the Federal Trade Commission (FTC)<\/strong> following allegations of deceptive and unfair practices related to the introduction of loot boxes in a popular online game.<\/p>\n\n\n\n

The case highlights growing concerns about the similarities between loot boxes and gambling, particularly as they affect younger players.<\/p>\n\n\n\n

The lawsuit, filed by the U.S. Department of Justice<\/strong> on behalf of the FTC, accuses Cognosphere of using aggressive tactics to promote loot boxes, described as digital packages containing random in-game rewards.<\/p>\n\n\n\n

Players purchase loot boxes using virtual currencies that must first be purchased with real money. The complexity of the currency exchange system and the opaque odds of winning desired prizes were highlighted as central issues in the case.<\/p>\n\n\n\n

According to the complaint, players may have to spend hundreds of dollars to get a rare \u201c5-star\u201d item, a fact hidden by the game\u2019s tiered payment structure. The complaint also states that the company has made more than $4 billion in loot box-related sales since the game\u2019s launch in 2020.<\/p>\n\n\n\n

The FTC highlighted that the game\u2019s practices disproportionately affected children and teens, many of whom lacked the financial literacy to navigate the system.<\/p>\n\n\n\n

Cognosphere was also accused of failing to comply with the Children\u2019s Online Privacy Protection Act (COPPA)<\/strong> by collecting personal information from players under 13 without obtaining parental consent.<\/p>\n\n\n\n

This combination of game mechanics and privacy violations resulted in significant financial and reputational penalties for the developer.<\/p>\n\n\n\n

Loot boxes have become a controversial issue around the world, with several countries banning or regulating them over concerns that they constitute gambling.<\/p>\n\n\n\n

Belgium and the Netherlands <\/strong>were among the first to ban loot boxes, arguing that their random nature and required monetary investment create a better gaming experience.<\/p>\n\n\n\n

Regulators in these countries have forced game developers to either remove loot boxes entirely or redesign their systems to comply with local laws.<\/p>\n\n\n\n

In the UK and Australia,<\/strong> loot boxes remain legal for now, but are under increased scrutiny. Reports linking loot boxes to problematic gambling behavior, particularly among minors, are fueling debate about stricter regulations.<\/p>\n\n\n\n

The European Union is also studying loot boxes, which could lead to union-wide regulations.<\/p>\n\n\n\n

Research has found parallels between the psychological triggers used in loot boxes, such as exciting animations and rare prize rewards, and those found in traditional gambling.<\/p>\n\n\n\n

Under pressure from regulators, some developers have modified their games to exclude loot boxes in regions where they are banned. Others have adopted more transparent systems that display the exact odds of winning certain rewards.<\/p>\n\n\n\n

The FTC\u2019s action against Cognosphere shows that the regulator is not willing to take half measures, especially when it comes to vulnerable groups like children.<\/p>\n\n\n\n

In the US, the debate over loot boxes continues to intensify. Advocacy groups have called for federal legislation to address their use in games accessible to minors. Meanwhile, game developers are being urged to adopt ethical monetization strategies that do not exploit their player base.<\/p>\n\n\n\n

Don’t forget to subscribe to our Telegram channel<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

The developer of the popular video game Genshin Impact could face a fine of up to $20 million in the United States for using loot boxes. Video game developer Cognosphere LLC and its subsidiary Cognosphere Pte. Ltd. have been fined by the Federal Trade Commission (FTC) following allegations of deceptive and unfair practices related to […]<\/p>\n","protected":false},"author":7,"featured_media":8192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[5,1,24],"tags":[11210,11212,11209,11213,10787,2071,11211,9798],"class_list":["post-8191","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gambling","category-news","category-regulations","tag-childrens-online-privacy-protection-act","tag-cognosphere-llc","tag-cognosphere-pte-ltd","tag-coppa","tag-federal-trade-commission","tag-ftc","tag-genshin-impact","tag-u-s-department-of-justice"],"yoast_head":"\nGenshin Impact Developer Can Faces $20 Million Fine Over Loot Boxes - SBC EURASIA EN<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sbceurasia.com\/en\/2025\/01\/22\/genshin-impact-developer-can-faces-20-million-fine-over-loot-boxes\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Genshin Impact Developer Can Faces $20 Million Fine Over Loot Boxes - SBC EURASIA EN\" \/>\n<meta property=\"og:description\" content=\"The developer of the popular video game Genshin Impact could face a fine of up to $20 million in the United States for using loot boxes. 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