ESRB: Games Industry Can Learn from FTC's Genshin Impact Settlement
Video game companies should prioritize compliance with the Children’s Online Privacy Protection Act (COPPA) and other consumer protection laws in the wake of the FTC's Jan. 17 settlement with the makers of videogame Genshin Impact, Stacy Feuer, senior vice president of the Entertainment Software Rating Board's Privacy Certified program, wrote in a blog post Friday.
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Even if you don’t aim your product at children solely, COPPA applies, Feuer said. “You can’t disclaim or avoid COPPA simply by stating that your game is not intended for children,” she said. “Although many companies make this claim in their privacy policies, it won’t help you if the facts -- as evaluated under the FTC’s multi-factor test -- show that your product is, in fact, child directed. And don’t ignore communications or evidence that children under the age of 13 are playing your game. That provides you with 'actual knowledge' under COPPA.”
Feuer also said that the enforcement action against the makers of Genshin Impact -- paired with the recent COPPA rule announcement (see 2501160068) -- shows that the FTC is making COPPA enforcement a priority.
Another lesson: be aware of “dark patterns” -- manipulative digital design tactics -- she said. Given that children's and teenagers’ executive function skills aren’t fully developed, certain design elements can take advantage of them, Feuer said. This goes hand in hand with advice to employ truth-in-advertising principles, she said.
The complaint against Genshin Impact alleged that the game was marketed to children and collected personal information from them in violation of COPPA. As part of the settlement, the game's makers were required to pay a $20 million penalty and block children younger than 16 from making in-game purchases without consent from parents, among other required changes, the FTC said (see 2501170068).