Last Update: December 20, 2022, 10:07 AM IST
FTC: Epic Games invaded privacy and defrauded users.
Epic Games will pay $520 million in penalties and refunds to settle complaints related to children’s privacy and its payment methods that tricked players into making unintended purchases
US federal regulators said Monday that the maker of the popular Fortnite video game will pay $520 million in penalties and refunds to settle complaints related to children’s privacy and its payment methods.
The Federal Trade Commission reached settlements to resolve two cases against Epic Games Inc., which has lauded the success of Fortnite over the past five years to become a video game powerhouse.
The $520 million included in the settlement includes $245 million in customer refunds and a $275 million fine for collecting personal information on Fortnite players under the age of 13 without notifying their parents or obtaining their consent. . This is the largest fine ever imposed for breaking an FTC rule.
“Epic used privacy-invasive default settings and a deceptive interface to trick Fortnite users, including teens and children,” FTC Chairperson Leena Khan said in a statement.
Even before the settlement was announced, Epic said in a statement that it had already initiated a series of changes “to ensure that our ecosystem meets the expectations of our players and regulators, which we expect.” that will be a helpful guide for others in our industry.” The Cary, North Carolina, company also claimed it no longer engaged in the practices flagged by the FTC.
$245 million in customer refunds will go to players who have been victims of so-called “dark patterns” and billing practices. Dark patterns are deceptive online techniques used to trick users into doing things they did not intend to do.
In this case, “Fortnite’s contradictory, inconsistent and confusing button configuration led players to incur unwanted charges based on the press of a single button,” the FTC said.
For example, players could be charged when trying to wake the game from sleep mode while the game was in the loading screen, or when trying to preview an item by pressing a nearby button. .
“These tactics cost consumers hundreds of millions of dollars in unauthorized charges,” the FTC said.
Epic said it agreed to the FTC settlement because it “wants to remain at the forefront of consumer protection and provide the best experience possible for our players.”
“No developer makes a game with the intention of ending up here,” Epic said.
During the past two years, Epic has also been locked in a high-profile legal battle with Apple in an attempt to remove barriers protecting the iPhone App Store, which during the past 14 years has been the world’s largest e-commerce site. Has emerged as one of the commerce hub. years. In August 2020, Apple ousted the video from the App Store after Epic introduced a separate payment system within its Fortnite app, leading to a lawsuit last year.
A federal judge ruled in favor of Apple, partly because it accepted the iPhone maker’s contention that its exclusive control over the App Store helps protect consumers’ safety and privacy. The ruling is currently under appeal, with a decision expected at some point next year.
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