The Federal Trade Commission announced on Friday that Genshin Impact developer Cognosphere has agreed to a $20 million settlement and several restrictions on how it sells its loot boxes and manages children’s personal data.

Kids and younger teens might soon be unable to play Genshin Impact's gachas. The developer behind the game has agreed to block players under 16 years old from making in-game purchases without parental consent in order to settle a complaint from the Federal Trade Commission.

The allegation that Genshin Impact misleads children about the odds of winning "Five-Star Prizes" in part relates to the Event Banners and "influencer campaigns", which the FTC says "give players the impression that they will have better odds of obtaining the five-star prize being promoted than they have in reality."

The company will pay, and make changes to its disclosures

The FTC penalized the Genshin Impact developer for misleading marketing around loot boxes and breaching child privacy laws.

Cognosphere, the publisher of anime-style fantasy video game "Genshin Impact," has agreed to pay $20 million to settle U.S. Federal Trade Commission allegations that the company violated a children's privacy law.

Genshin Impact publisher Hoyoverse has agreed to a settlement with the United States Federal Trade Commission where it agrees to pay a $20 million fine, and be banned from sellling lootboxes to teenagers under the age of 16.

Genshin Impact developer Cognosphere has been made to pay $20 million is banned from selling loot boxes to children under 16 without parental consent.