Epic Games to Pay More Than Half a Billion Dollars for FTC Allegations

Epic Games, the creator of Fortnite, has been charged with violating children’s privacy regulations, altering default Privacy settings, and coercing players into taking unneeded actions, according to the US Federal Trade Commission (FTC). The firm was fined $275 Million for obtaining personal data on Fortnite users under 13 without notifying or getting parental consent. Epic Games will refund $245 million to customers who were affected by these “dark practices”. This is one of the most severe penalties ever imposed by FTC rules. It has also signed two settlement agreements worth $520 million with the FTC, Lina M. Khan, Chair of FTC.
“Epic used privacy-invasive default settings, deceptive interfaces, and tricked Fortnite users, teens and children, as our complaints note.” The Commission’s top priority is protecting the public, especially children, against online privacy invasions and dark pattern. These enforcement actions show businesses that the FTC is taking action against these illegal practices.
US regulators stated that the billing tactics used by the game forced users to make purchases against will.
The FTC stated that Fortnite’s “counterintuitive, inconsistent and confusing button configuration led to players incurring unwanted charges based upon the pressing of a single button.”
Epic Games claims that issues have been raised by the Fortnite item shop and earlier refund systems. According to Epic Games, the FTC will distribute the funds “at their discretion” and to customers.
“Statutes that were written decades ago don’t define how gaming ecosystems should function.” The company stated that while the laws have not changed, their application has evolved and industry practices have become obsolete.
Epic Games claimed that they have developed features such as easier-to-access parental controls, a daily spending limit for minors, and a yes/no option for saving payment information. This was in addition to the clear yes/no choice. Epic Games joined the Metaverse Standards Forum, along with Microsoft and Meta, and is now developing a LEGO-themed metaverse world. We encourage you to do your own research before investing.Join us to keep track of news: coincu.comHaroldCoincu NewsTags: Epic GamesFortniteFTCMetaMetaverseMicrosoft