New: a trial court in 1 of every 10 U.S. counties. Read the post
Court Rules
All enforcement actions
Consent DecreeCritical Risk

FTC Fines Cognosphere $20M for COPPA and Loot Box Violations

Cognosphere Pte. Ltd and Cognosphere LLCJanuary 17, 2025Federal Trade Commission

Penalty Amount

$20,000,000

Summary

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.

Remedy

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.

Monetary PenaltyInjunctionData DeletionCompliance Program

Laws Cited

15 U.S.C. § 45(a)15 U.S.C. § 6501-6506

Violation Types

Entity Details

Entity

Cognosphere Pte. Ltd and Cognosphere LLC

Also known as: Cognosphere

Industry

Gaming

Official Sources

Related Enforcement Actions

FTC

REPS & Company Inc.

The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.

FTC

Digital Forensics Corporation LLC

The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.

FTC

Greenway Auto Group

The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.

FTC

24 healthcare services companies (not individually named)

The FTC sent warning letters to 24 large healthcare services companies, cautioning that incomplete, inaccurate, or untimely pricing information for scheduled medical care may be unfair or deceptive. The letters urge recipients to review their price-disclosure practices and take corrective action; they announce no fine or formal order.

FTC

Premier Franchising Group LLC and Franchise Fastlane LLC

$1.9M

The FTC alleged that Premier Franchising Group LLC and Franchise Fastlane LLC made deceptive and unsubstantiated claims about the Premier Martial Arts franchise opportunity and violated the Franchise Rule. The proposed settlements require the companies to pay a combined $1.85 million to compensate franchisees, prohibit certain misrepresentations, and require Franchise Rule compliance; certain franchisees may also cancel their agreements without penalty.

FTC

Lens.com Inc.

The FTC, Utah, and Nevada sued Lens.com Inc., alleging that it advertised artificially low contact lens prices while hiding mandatory checkout charges and misleading consumers about its AutoRefill subscription. The complaint seeks to stop the alleged practices; the court has not yet decided the case, and no penalty or remedy has been imposed.