Cognosphere to Pay $20 Million in Settlement Over FTC Complaint Regarding Genshin Impact

Cognosphere, the distributor of Genshin Impact, has reached a settlement with the US Federal Trade Commission, agreeing to pay $20 million to resolve allegations of violating the Children's Online Privacy Protection Act and deceiving users about in-game purchases. The FTC filed a complaint in January 2025, claiming that Cognosphere targeted children under 13 with marketing for Genshin Impact and collected their personal data without parental consent. Additionally, the FTC alleged that Cognosphere misled players about the odds of winning loot box prizes and made the purchasing process for in-game currency overly complex. To address these concerns, Cognosphere will introduce new age-gate and parental consent protections, as well as provide clearer disclosures about virtual currency and rewards for players in the US. The company stated that it values the trust of its community and is committed to transparency, despite believing that many of the FTC's allegations were inaccurate. The settlement also requires Cognosphere to refrain from selling loot boxes to children under 16 without parental consent and to rectify the misrepresentation of loot box odds and prices.