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Epic Games, the developer behind Fortnite, has been fined by the Federal Trade Commission (FTC) to pay $275 million for collecting the private data of children, as well as refunding customers $245 million for using “dark patterns and billing practices”.
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The two costs combined come to $520 million and is the biggest fine of this type that the FTC has ever given out. Epic Games have not admitted, or denied, these charges from the FTC despite agreeing to pay the fines.
Why has Fortnite Been Fined $275 million?
The FTC fined Epic Games $275 million as they believe they have violated the Children’s Online Privacy Protection Act (COPPA rule). This rule is used to regulate the collection and use of all children under the age of 13.
The reason why the FTC believes this has been violated is because they were collecting the information of children without asking permission from the children’s parents or guardians.
Fortnite also has voice and text chat turned on automatically, for everyone playing the game. This has led to children being harassed on voice chat. Epic Games did add an option in the menus so this could be turned off, but the FTC said it was too hard for users to find.
Why has Fortnite Been Fined $245 million?
The other part of the $520 million is to refund players directly for the aforementioned “dark patterns and billing practices”. What this means, is they would trap customers paying for in-game items and then making it difficult for them to cancel any purchases.
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The FTC said these measures employed by Epic Games were “counterintuitive, inconsistent and confusing button configurations” which led to players making accidental purchases.
The FTC have said they will use the money from the settlement to refund players and they will be sorted out via their website.
What Epic had to Say:
Epic Games have confirmed the settlement , and stated they will be “moving beyond long-standing industry practices.”
They went on to add:
“No developer creates a game with the intention of ending up here…
“The video game industry is a place of fast-moving innovation, where player expectations are high and new ideas are paramount. Statutes written decades ago don’t specify how gaming ecosystems should operate.
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“The laws have not changed, but their application has evolved and long-standing industry practices are no longer enough. We accepted this agreement because we want Epic to be at the forefront of consumer protection and provide the best experience for our players.”
