Fortnite in the Eye of the Storm About Allegations With the Federal Trade Commission

Fortnite got in trouble with the FTC over assumptions that the Fortnite video game maker, Epic Games, used dark patterns and other deceptive practices to trick players into making unwanted purchases.

The lawsuit, which has taken almost a year to settle, was originally filed in December 2022.

According to the FTC’s official website, in a complaint that was first announced in December 2022, the FTC proposed that Epic Games “developed and deployed a variety of tricks to get younger players to make unintended in-game purchases.” These purchases included skins, gliders, backpacks, pickaxes, and V-bucks.

Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, acknowledged that Epic has taken advantage of complicated settings, taking consumers’ money:

“Epic put children and teens at risk through its lax privacy practices, and [it] cost consumers millions in illegal charges through its use of dark patterns… 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.” 

Children’s Online Privacy Protection Rule (COPPA) is one of the FTC’s biggest rules and states that collecting personal data of video game players under the age of 13 is illegal.

The FTC’s action against Epic resulted in a massive settlement. Epic Games will pay an estimated $275 million for violating COPPA, which is the largest penalty ever secured for violating an FTC rule. 

According to the FTC’s official website, they suspected that Epic was aware that most people who played Fortnite were children. This was proven through surveys of Fortnite users, the licensing and marketing of Fortnite toys and merchandise, player support and other company communications, and collected personal data from children themselves. This was all happening without asking for parent’s consent.

Fortnite responded, saying parents were jumping to unreasonable conclusions. Fortnite also failed to approve these parents’ requests for refunds and for personal information to be deleted.

Epic will now be required to make stronger privacy default settings for children and teens, making sure that voice and text communications are turned off by default. Per the FTC, a separate administrative order was taken, and Epic will pay $245 million to refund consumers for its dark patterns and billing scandals. According to ftc.gov, this is the largest refund amount in a gaming case, and its largest administrative order in history.

The money provided as part of the $245 million settlement with Epic Games will provide a refund for customers. The FTC has begun the process and have already contacted 37 million people by email that may be eligible for refunds. The deadline to file a claim is January 2024.

Information on how to file a claim can be found at www.ftc.gov/Fortnite. Customers who have questions about the claims process can contact the administrator by phone at 1-833-915-0880 or by email at admin@fortniterefund.com.  

Photo Credit: https://finance.yahoo.com/news/did-kids-buy-gear-fortnite-174533281.html 

Photo Credit: https://www.ftc.gov/enforcement/refunds/fortnite-refunds 

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