‘Fortnite’ maker Epic Games to pay $520 million in record-breaking FTC settlement

‘Fortnite’ maker Epic Games to pay $520 million in record-breaking FTC settlement

The creator of the popular video game "Fortnite," Epic Games, has agreed to pay the US government a total of $520 million to resolve claims that it deceived millions of players, including kids and teenagers, into making unintended purchases and that it broke a key federal law protecting the privacy of children.
In order to settle allegations that it violated the Children's Online Privacy Protection Act (COPPA) by collecting the personal information of children under the age of 13 without first obtaining their parents' verifiable consent, Epic has agreed to pay the US government $275 million. According to the FTC, it is the biggest fine it has ever assessed for breaking a rule it has enforced.
The claims about Epic's allegedly deceptive design decisions were made in an administrative complaint to the FTC. According to the complaint, more than a million parents have complained to Epic about unauthorized payments as a result of how simple it was for kids to buy in-game things with only a click or button press and without getting permission from their parents.
The FTC also claimed that Epic made it more challenging for customers to return in-game items by tucking the choice away at the bottom of the screen and required them to press and hold a button on their controllers. Accidental charges were apparently the "number one'reason'" people clicked on the cancel button when it was more prominently displayed, leading to the implementation of those design decisions.
The FTC and Epic have reached a tentative deal that restricts Epic from charging customers without their permission or utilizing dark patterns. It also forbids Epic from locking players out of their accounts in response to users' refund requests with credit card providers disputing erroneous charges. The agreement will be in effect for 20 years after it is enacted.
The FTC and Epic have agreed to introduce a feature that expressly asks Fortnite players if they want to save their payment information for use in the future, according to a blog post by Epic. The function is active right now, it was added. Additionally, the business just released a more constrained version of "Fortnite" for younger players, which limits communication and transactions but still lets kids access some features while waiting for parental approval.
According to the FTC, Epic may no longer by default enable text and voice chat for teenage Fortnite users or those under the age of 13 as part of its children's privacy settlement. The business must also create a thorough privacy procedure and remove the information it allegedly collected in breach of COPPA.
The tactics mentioned in the FTC's complaints are not how Fortnite operates, according to Epic. "We share the core principles of fairness, openness, and privacy that the FTC enforces," the company noted. "We will continue to be clear about what players may expect when making purchases, make sure that requests for cancellations and refunds are simple, and implement protections that help keep our ecosystem secure and enjoyable for users of all ages," the company stated.