Cognosphere, the Singapore-based developer behind Genshin Impact, has agreed to pay a $20 million fine to settle charges filed by the Federal Trade Commission (FTC). The settlement reportedly involves allegations of misconduct, including the handling of user data and consumer rights violations. As part of the resolution, the developer is also banned from specific sales practices in the U.S., marking a significant legal and financial setback for the popular game’s creators.
Vero’s thoughts on the news:
This case highlights a pressing issue in the game development and wider tech industries: the balance between innovation and ethical responsibilities. Collecting and managing vast amounts of user data is essential for many applications, but enterprises must handle this data with integrity and transparency. Developers must prioritize compliance with local regulations to avoid heavy fines and legal challenges. As popular games like Genshin Impact scale on a global level, such actions serve as a critical reminder of the importance of building not just engaging products but also trustworthy ecosystems for users.
Source: Genshin Impact’s developer to pay $20 million fine to settle FTC charges – The Verge
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