Penalty Amount
$20,000,000
The FTC settled with Cognosphere, the developer of Genshin Impact, for violating COPPA by collecting children's data without parental consent and for using deceptive loot box practices that misled players about costs and odds. Cognosphere will pay a $20 million fine, be banned from selling loot boxes to teens under 16 without parental consent, and must implement various transparency and data deletion measures.
Cognosphere must pay a $20 million fine, prohibit loot box sales to children under 16 without parental consent, offer real money purchase options, disclose loot box odds and virtual currency exchange rates, delete children's data collected without consent, and comply with COPPA.
Entity
Cognosphere Pte. Ltd and Cognosphere LLC
Also known as: Cognosphere
Industry
GamingOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2025/01/genshin-impact-game-developer-will-be-banned-selling-lootboxes-teens-under-16-without-parental
cognosphere complaint
https://www.ftc.gov/system/files/ftc_gov/pdf/cognosphere_complaint.pdf
Cognosphere Attachment3 3
https://www.ftc.gov/system/files/ftc_gov/pdf/Cognosphere-Attachment3-3.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
$18.0M
Consumer fraud enforcement action where the FTC settled with Air AI for misleading entrepreneurs with false earnings and refund guarantees. The company will be banned from marketing business opportunities and pay a suspended $18 million judgment with $50,000 for consumer relief. Violations included failure to provide required disclosures and false claims under the Telemarketing Sales Rule and Business Opportunity Rule.
$17.0M
Consumer fraud enforcement action where the FTC settled with Xponential Fitness for violating the Franchise Rule by misrepresenting key information to franchisees, including time to open and costs. The settlement includes a $17 million monetary judgment for redress and prohibits future misrepresentations.
Consumer fraud and advertising enforcement action where the FTC sent warning letters to 97 auto dealership groups for deceptive pricing practices, such as advertising prices that exclude mandatory fees, misleading consumers about total costs. The letters stress the need for truthful and transparent pricing in the automotive industry.
$100.0M
The FTC and 11 states settled with Walmart for $100 million over deceptive earnings claims in its Spark Driver gig worker app, where drivers were misled about base pay, tips, and incentives. The settlement also addressed GLBA violations for failing to provide proper notice regarding the handling of drivers' financial information. Walmart must implement an earnings verification program and is banned from misrepresenting driver earnings.
The FTC issued a policy statement announcing it will not enforce COPPA against operators that collect age verification data under specific conditions. The policy aims to encourage the use of age verification technologies to protect children online. Operators must limit data use, ensure security, provide notice, and use accurate verification methods.
The FTC issued a policy statement announcing that it will not enforce the COPPA Rule against website and online service operators that use age verification technologies solely to determine user age, provided they comply with conditions such as limiting data use, ensuring security, and providing clear notice. This policy aims to incentivize age verification tools to protect children online.