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FTC Slaps $20 Million Fine on Cognosphere for Child Privacy Violations

1/18/2025

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Summary

Story summary

The FTC imposed a $20 million fine on Cognosphere for breaching children's privacy laws and misleading players on transaction costs.
Cognosphere must prevent children under 16 from making in-game purchases without parental consent and reveal loot box odds.
The FTC condemned the game's marketing for targeting children and hiding true costs.
The settlement enforces compliance with COPPA and requires deletion of data from children under 13.

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Story summary

The FTC imposed a $20 million fine on Cognosphere for breaching children's privacy laws and misleading players on transaction costs.
Cognosphere must prevent children under 16 from making in-game purchases without parental consent and reveal loot box odds.
The FTC condemned the game's marketing for targeting children and hiding true costs.
The settlement enforces compliance with COPPA and requires deletion of data from children under 13.