By News Zier Editorial Team | Reviewed and approved by Editor-in-Chief to ensure accuracy and integrity.
Washington, D.C. – The creator of the globally popular video game Genshin Impact has agreed to pay $20 million as part of a settlement with the Federal Trade Commission (FTC) over alleged violations of data protection laws. The case underscores growing regulatory scrutiny on the gaming industry’s handling of user data, particularly for younger audiences.
The settlement follows an FTC investigation that accused the game’s developer, miHoYo, of collecting and storing personal data from children under the age of 13 without proper parental consent—a violation of the Children’s Online Privacy Protection Act (COPPA).
What the FTC Found:
According to the FTC, miHoYo failed to comply with COPPA requirements by:
• Collecting personal information from minors without parental consent.
• Storing sensitive user data without adequate security measures.
• Failing to delete children’s data even after requests from parents.
“The gaming industry has a responsibility to protect its youngest players,” said an FTC official in a statement. “This settlement sends a strong message that companies must prioritize user privacy and comply with federal laws.”
miHoYo’s Response:
In response to the settlement, miHoYo released a statement acknowledging its shortcomings and pledging to strengthen its data protection practices.
“We deeply regret the oversights that led to this situation and are committed to ensuring the privacy and safety of all our players,” the company said.
As part of the agreement, miHoYo has not only agreed to the monetary penalty but has also committed to implementing enhanced privacy protocols, including stricter parental controls and regular audits of its data handling practices.
Broader Implications for the Gaming Industry:
The settlement highlights the growing focus on data privacy in the gaming world, where millions of players—many of them minors—regularly share personal information.
Experts say this case could set a precedent for how regulatory bodies handle data privacy issues in the gaming industry. “The FTC is making it clear that no company is exempt from scrutiny when it comes to protecting user data, especially for children,” said a technology policy analyst.
The Bigger Picture:
With the gaming industry expected to generate over $200 billion in revenue this year, privacy concerns are becoming an increasingly critical issue. Analysts predict that more companies could face similar investigations as regulatory agencies worldwide tighten data protection laws.
For gamers, the case serves as a reminder to remain vigilant about their personal data and to ensure they are aware of privacy settings within the platforms they use.
Disclaimer: This article was informed by reports from Bloomberg and adapted by News Zier Editorial Team for clarity and additional context.
For more details: Visit the original report on Bloomberg.
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