Epic Games To Pay More Than Half A Billion Dollars Over FTC Allegations

The creator of the video game Fortnite, Epic Games, is allegedly charged with breaking children’s privacy regulations, altering default privacy settings, and coercing users into taking unneeded acts, according to the US Federal Trade Commission‘s (FTC) official website.

For gathering personal data on Fortnite players under the age of 13 without notifying or obtaining parental consent, the firm was fined $275 million. One of the largest penalties ever imposed for breaking FTC rules is this one.

Customers who were harmed by these “dark patterns” will receive refunds totaling $245 million from Epic Games. Additionally, it has signed two $520 million settlement agreements with the FTC.

FTC Chair Lina M. Khan said:

“As our complaints note, Epic used privacy-invasive default settings and deceptive interfaces that tricked Fortnite users, including teenagers and children. 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.”

US regulators said that the game’s billing tactics forced users to make purchases against their will, in addition to privacy concerns.

“Fortnite’s counterintuitive, inconsistent, and confusing button configuration led players to incur unwanted charges based on the press of a single button,” the FTC said.

The Fortnite item shop and refund systems’ earlier designs have raised issues, according to Epic Games. According to the company, the FTC will disperse the funds “at their discretion” to customers.

“Statutes written decades ago don’t specify how gaming ecosystems should operate. The laws have not changed, but their application has evolved and long-standing industry practices are no longer enough,” the company said.

In addition to having a clear yes/no choice for saving payment information, Epic Games claimed to have developed features including simpler-to-access parental controls and a daily spending cap for minors under 13.

As stated when raising $2 billion in April at a $31.5 billion value, Epic Games has progressively established itself as a significant constructor of the metaverse. Along with companies like Meta and Microsoft, Epic Games has joined the Metaverse Standards Forum (MSF) and is also developing a family-friendly, official LEGO-themed metaverse game world.

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