Genshin Impact uses loot boxes to promote in-game purchases and the financial implications were allegedly dangerous for children and teenagers. In a complaint to the FTC, the US DoJ alleged rampant use of misleading and unfair tactics.

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

The FTC's complaint alleges that Singapore-based Cognosphere deceived children and other users about the real costs of in-game transactions and the odds of obtaining rare prizes.