Epic Games, the developer behind the popular video game Fortnite, has agreed to pay $520 million to the Federal Trade Commission (FTC) to resolve allegations that it violated children's online privacy protections and misled players into making unintended purchases. The settlement includes a record-breaking $275 million civil penalty for alleged violations of the Children's Online Privacy Protection Act (COPPA) and a $245 million consumer refund to resolve accusations of using so-called "dark patterns" to trick customers into paying for goods and services.
According to the FTC, Epic Games collected personal information from Fortnite players under the age of 13 without obtaining verifiable parental consent, in violation of COPPA. The agency also alleged that the company enabled real-time voice and text chat communications for children and teens by default, putting them at risk of being bullied, threatened, harassed, and exposed to psychological trauma.
In addition to the COPPA violations, the FTC accused Epic Games of using confusing button configurations and other tactics to drive unintended purchases of virtual currency for in-game perks such as outfits and dance moves. The agency claimed that these tactics resulted in hundreds of millions of dollars in unauthorized charges for consumers.
Furthermore, the FTC alleged that Epic Games made it difficult for customers to find and use the cancel and refund features, and locked the accounts of those who disputed unauthorized charges with their credit card companies. The company also reportedly warned customers that they could be banned for life if they disputed any future charges.
Despite the settlement, Epic Games did not admit or deny the FTC's allegations. In a statement, the company said, "We accepted this agreement because we want Epic to be at the forefront of consumer protection and provide the best experience for our players."
The FTC's enforcement actions against Epic Games serve as a reminder to businesses to prioritize online privacy and to avoid deceptive practices that could harm consumers. FTC Chair Lina Khan emphasized the importance of protecting the public, particularly children, from online privacy invasions and deceptive practices.
.png)
.jpg)