The FTC hits Fortnite developer Epic Games with $520 million fine
The Federal Trade Commission (FTC) is forcing Epic Games to pay a $520 million fine for allegedly misleading players into making accidental purchases in Fortnite.
On Monday, the FTC made an announcement stating that Epic Games will pay $275 million for “violating children’s privacy law” in addition to another payment of $245 million in refunds for “tricking users into making unwanted charges” within Fortnite‘s in-game store.
“As our complaints note, Epic used privacy-invasive default settings and deceptive interfaces that tricked Fortnite users, including teenagers and children,” Lina M. Khan, FTC Chair, said. “Protecting the public, and especially children, from online privacy invasions and dark patterns is a top priority for the Commission, and these enforcement actions make clear to businesses that the FTC is cracking down on these unlawful practices.”
The FTC’s claim mentions “Fortnite‘s counterintuitive, inconsistent, and confusing button configuration,” leading to accidental purchases, along with alleging that Epic Games revokes access to “thousands of dollars” worth of content on a player’s account if they dispute unauthorized credit card charges.
“Epic put children and teens at risk through its lax privacy practices, and cost consumers millions in illegal charges through its use of dark patterns,” Samuel Levine, director of the FTC’s bureau of consumer protection, explains. “Under the proposed orders announced today, the company will be required to change its default settings, return millions to consumers, and pay a record-breaking penalty for its privacy abuses.”
Shortly afterward, Epic released a statement regarding the FTC settlement.
“Statutes written decades ago don’t specify how gaming ecosystems should operate,” Epic said. “The laws have not changed, but their application has evolved and long-standing industry practices are no longer enough. We accepted this agreement because we want Epic to be at the forefront of consumer protection and provide the best experience for our players.”
Epic recently added new parental controls in Fortnite, making the popular battle royal somewhat more secure.
Written by Kyle Campbell on behalf of GLHF.