Epic Games has agreed to pay more than half a billion dollars to the Federal Trade Commission for privacy violations. The company will pay $275 million for violating the Children’s Online Privacy Protection Act (COPPA), the largest fine ever and $245 million as refunds to customers who spent money “for its dark patterns and billing practices.â€
Fortnite-maker Epic Games will pay the largest-ever penalty for COPPA violations and the largest-ever refund amount for a gaming-related case that FTC ordered. “As our complaints note, Epic used privacy-invasive default settings and deceptive interfaces that tricked Fortnite users, including teenagers and children,†said FTC Chair Lina M. Khan.
FTC’s complaint against Epic Games alleged the company engaged in several unlawful practices, including collecting personal information from Fortnite players aged 13 or less without notifying their parents or obtaining their parents’ consent and setting real-time voice and text chat communications for children and teens on by default.
The federal agency added that children and teens were subjected to online bullying, threats, and harassment and were exposed to “dangerous and psychologically traumatizing issues such as suicide while on Fortnite.â€
When Epic Games’ employees raised concerns, the company addressed them by installing a button to turn voice chat off but placed it to make it difficult for gamers to find it, according to the FTC.
See More: Meta Fined $275M for Failing to Protect the Data of 533M Facebook Users
Additionally, the game developer, which legally went after Apple in an App Store-related antitrust case, agreed to refund the amount it earned through deploying dark patterns. Some complaints the FTC raised include not requiring the CVV security keys for purchases and providing no purchase confirmation alerts.
FTC calledOpens a new window button configurations in Epic Games’ games “counterintuitive, inconsistent, and confusing,†leading to unwanted charges. Even the ‘Undo Purchase’ button that Epic Games introduced in 2019 was placed in an obscure location in the app.
What’s more, Epic Games warned users of a lifetime ban from its games if they disputed any unauthorized charges.
Before the $520 million fine, divided into two separate settlements, was announced, Epic Games pointed out in a blog postOpens a new window that it brought several features to make sure it doesn’t make the same mistakes again.
These include Cabined Accounts that have chat (voice and text) and in-game purchasing disabled for accounts registered with ages < 13 and without parental consent. Parents can also adjust game settings for Fortnite, Rocket League, and Fall Guys. Epic Games will also ask users whether to store credit card information while making a payment.
However, the company added, “Statutes written decades ago don’t specify how gaming ecosystems should operate. The laws have not changed, but their application has evolved and long-standing industry practices are no longer enough.
“We accepted this agreement because we want Epic to be at the forefront of consumer protection and provide the best experience for our players.â€
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