Epic Games, the creators of the hugely popular video game Fortnite, has suffered the biggest penalty ever by the Federal Trade Commission for a rule break this week.
The developer was ordered to pay $520 million for violating the Children’s Online Privacy Protection Act as well as tricking millions of players into making unintended in-game purchases using using a technique called “Dark Patterns”.
Fortnite is free to play and earns billions of dollars from in-game purchases, such as digital skins for player characters and a seasonal “Battle Pass” that offers useful items when users spend more time playing.
In a release that breaks Epic’s breachesThe FTC says that the game’s “unintuitive, inconsistent, and confusing button configuration exposes players to unexpected charges based on a single button press,” even when players think the game is in sleep mode or in the loading screen.
“These tactics have resulted in hundreds of millions of dollars in unauthorized fees for consumers,” the FTC said.
Fortnite allows kids to buy its in-game currency “without requiring any parental or cardholder action or consent.” Parents complained that their children “charged hundreds of dollars before they realized that Epic had charged their credit cards without their consent.”
“The laws haven’t changed, but their application has evolved and the age-old practices in the industry are no longer enough,” Epic said in a statement in response to punishment. “We accepted this agreement because we want Epic to be at the forefront of consumer protection and provide the best experience for our players.”
Of the $520 million fine, $245 million will be set aside to refund customers.
Are you eligible for a Fortnite cashback?
Three groups can expect a refund:
- Parents whose children made unauthorized purchases in the Epic Games Store from January 2017 to November 2018
- Players are charged Fortnite in-game for items they do not intend to purchase between January 2017 and September 2022
- Players dispute unauthorized charges with their credit card company and as a result their account is locked
When will FTC’s Fortnite refunds be paid?
