![]() Both fines were record-high amounts for the FTC. The settlements in the two cases totaled $520 million split between a fine for the privacy violations, and the remaining $245 million going toward in-app payment settlements. Last year Epic settled with the FTC on charges that Fortnite not only harmed children by improperly collecting their data and violating their privacy, but that it was also crammed full of so-called " dark patterns" in its interface that confuse users and trick them into spending on items, whether they intend to or not. Parent discovers the cost of ignoring Roblox: £2,500 and heart palpitationsīecause the game itself is free, those microtransactions are how Fortnite and Epic Games make money.Epic snub by Supreme Court in battle to escape Apple App Store payment prison.Watchdog mulls online facial age-verification tech – for kids' parents.Epic payment: Fortnite maker pays record $520m to settle FTC case. ![]() This was a record fine for a COPPA violation, also up until the Epic settlement.For those blissfully unaware of Fortnite or the many "dances" it has driven gaggles of children to perform in the worst of possible public spaces, it's a battle royale free-for-all video game that makes millions in microtransactions used to buy cosmetic items, weapon skins, and other things that don't directly affect game play. YouTube, a unit of Alphabet Inc.’s Google, paid a $170 million penalty. YouTube and TikTok agreed to settlements with the FTC after being accused of violating the children’s online privacy law in 2019. The penalty was the agency’s biggest involving dark patterns before the Epic case. Last month, Ericsson AB subsidiary Vonage agreed to pay $100 million to settle FTC allegations that it created a web of obstacles for its customers to cancel its internet-based telephone service and charged unexpected termination fees. The FTC has been increasing enforcement against companies with websites or apps that make it easy for consumers to make unintended purchases and difficult for them to get refunds. Fortnite and Rocket League players have until April 26, 2021, to claim up to 50 or in-game credits as part of a 26.5 million settlement resolving an Epic Games class action lawsuit. It is likely to take several months or longer to process those claims, the FTC said. The company must also obtain regular, independent audits, the agency said.Ĭonsumers who believe they were unfairly charged for in-game purchases can go to a website set up by the FTC to request refunds, the commission said. Users who sign up for it can’t access features such as chat and purchasing unless they obtain consent from a parent or guardian.Īs part of the dual settlements, the FTC said Epic is required to make a number of changes to “Fortnite" to protect users as well as to establish a privacy program that addresses the problems identified in its complaints. among its investors.Įarlier this month, Epic unveiled a new type of account it said was designed to provide a safe and inclusive experience for players under 13. The Cary, N.C., company counts Sony Group Corp. Closely held Epic was last valued at nearly $32 billion in April. “Fortnite" made its debut in 2017 and quickly became one of the world’s most popular shooter videogames and a cultural phenomenon. The FTC further alleged that Epic intentionally obscured cancel and refund features to make them more difficult to find and that the company locked the accounts of customers who disputed unauthorized charges with their credit card companies.Įven when Epic agreed to unlock an account, consumers were warned that they could be banned for life if they disputed any future charges, the FTC said. “These tactics led to hundreds of millions of dollars in unauthorized charges for consumers," it said. The agency alleged that Epic deployed a variety of tactics to drive unintended purchases of virtual perks such as outfits and dance moves in “Fortnite," including the use of counterintuitive, inconsistent and confusing button configurations. ![]() It is the FTC’s largest settlement that bars the use of so-called dark patterns, tactics that trap customers into paying for goods and services and create obstacles to canceling. The commission also said the company agreed to pay $245 million in consumer refunds to resolve the second complaint, which was filed in administrative court. The company couldn’t immediately be reached for comment. Epic will pay a $275 million civil penalty for the alleged COPPA violations, the FTC said, the largest assessed in the commission’s enforcement of the privacy law.Įpic didn’t admit or deny the FTC’s allegations as part of the settlements.
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