The Federal Trade Commission (FTC) has fined Cognosphere, the publisher behind popular games like Genshin Impact, $20 million. The penalty comes as a result of allegations that the company misled users,

The Federal Trade Commission (FTC) has imposed a $20 million fine on Cognosphere, the U.S. subsidiary of Chinese gaming developer miHoYo, for deceptive marketing practices and violations of child privacy laws.

Genshin Impact developer Cognosphere (aka Hoyoverse) has agreed to a $20 million settlement with the U.S. Federal Trade Commission (FTC) over its gacha loot box monetization and is now banned from selling them to teens under the age of sixteen without parental consent.

The FTC's complaint alleges that Singapore-based Cognosphere deceived children and other users about the real costs of in-game transactions and the odds of obtaining rare prizes.