During 2022, the United States Federal Trade Commission (FTC) filed complaints against Epic Games, accusing it of violating online privacy laws. The legal dispute immediately highlighted not only incorrect billing practices but also the failure to protect minors under 13, thus automatically violating the Children’s Online Privacy Protection Act (COPPA).
Epic Games has agreed to pay a huge sum: 520 million dollars. The parties agreed that $275 million will be reserved for payment of the fine for violations of COPPA, while the remaining 245 million will be intended to compensate Fortnite players affected by deceptive billing practices.
The FTC has slammed the use of “dark patterns” in Fortnite’s interfacewhich would cause players to make unintentional purchases. Confusing button configurations during gameplay, such as when waking from sleep mode or during loads, have led to accidental charges.
As part of the settlement, the FTC has begun issuing refunds to Fortnite players affected by these deceptive billing practices. So far, over $72 million in refunds have been processed, with eligible players receiving approximately $114 per refund via PayPal or checks.
Players who were charged for unwanted purchases between January 2017 and September 2022 are eligible for refunds. Additionally, those whose children made unauthorized purchases or who had their accounts blocked after disputing the charges can also receive compensation. More than 600,000 players have already received refunds under the FTC’s initiative, highlighting the broad scope of the issue that has affected numerous Fortnite users due to Epic Games’ misleading billing practices.
Following the sanction, Epic Games has pledged to change its business practices. This includes updating its privacy policies and changing its billing procedures to prevent future problems, with a particular focus on improving Fortnite’s interface and chat features.
