FTC Finalizes Order Requiring Fortnite maker Epic Games to Pay $245 Million for Tricking Users

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FTC Finalizes Order Requiring Fortnite maker Epic Games to Pay $245 Million for Tricking Users into Making Unwanted Charges
https://www.ftc.gov/news-events/news/press-releases/2023/03/ftc-finalizes-order-requiring-fortnite-maker-epic-games-pay-245-million-tricking-users-making

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The Federal Trade Commission has finalized an order requiring Epic Games, the maker of the Fortnite video game, to pay $245 million to consumers to settle charges that the company used dark patterns to trick players into making unwanted purchases and let children rack up unauthorized charges without any parental involvement.

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As part of a separate settlement, also announced in December, Epic agreed to pay a $275 million penalty to settle FTC allegations that the company violated the Children’s Online Privacy Protection Act Rule.

 

The privacy violations regarding children:

• Violated COPPA by Failing to Notify Parents, Obtain Consent: The FTC alleged that Epic was aware that many children were playing Fortnite—as shown 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 without first obtaining parents’ verifiable consent. The company also required parents who requested that their children’s personal information be deleted to jump through unreasonable hoops, and sometimes failed to honor such requests.
• Default settings harm children and teens: Epic’s settings enable live on-by-default text and voice communications for users. The FTC alleges that these default settings, along with Epic’s role in matching children and teens with strangers to play Fortnite together, harmed children and teens. Children and teens have been bullied, threatened, harassed, and exposed to dangerous and psychologically traumatizing issues such as suicide while on Fortnite.

But the part that may set precedent for the gaming industry and microtransactions in general:

• Used dark patterns to trick users into making purchases: The company has deployed a variety of dark patterns aimed at getting consumers of all ages to make unintended in-game purchases. Fortnite’s counterintuitive, inconsistent, and confusing button configuration led players to incur unwanted charges based on the press of a single button. For example, players could be charged while attempting to wake the game from sleep mode, while the game was in a loading screen, or by pressing an adjacent button while attempting simply to preview an item. These tactics led to hundreds of millions of dollars in unauthorized charges for consumers.
• Charged account holders without authorization: Children and other users who play Fortnite can purchase in-game content such as cosmetics and battle passes using Fortnite’s V-Bucks. Up until 2018, Epic allowed children to purchase V-Bucks by simply pressing buttons without requiring any parental or card holder action or consent. Some parents complained that their children had racked up hundreds of dollars in charges before they realized Epic had charged their credit card without their consent. The FTC has brought similar claims against companies such as Amazon, Apple, and Google for billing consumers millions of dollars for in-app purchases made by children while playing mobile app games without obtaining their parents’ consent.
• Blocked access to purchased content: The FTC alleged that Epic locked the accounts of customers who disputed unauthorized charges with their credit card companies. Consumers whose accounts have been locked lose access to all the content they have purchased, which can total thousands of dollars. Even when Epic agreed to unlock an account, consumers were warned that they could be banned for life if they disputed any future charges.

 

The last bullet point is what's really disgusting. That said, refund information can be found on ftc.gov/fortnite.

I would love to see them look at mobile gaming/apps next, with the janky X buttons to close out ads, flooding you with popups, or navigating you to downloading another launcher if you're on Android. Nothing like having to remove junk like this on a family member's phone because of this shady behavior...