Epic Games Fined More than $500M for Fortnite's 'Unfair' Micro-Transaction Practices. The FTC claims that Epic Games "fooled" players with its deceptive practices.
The Federal Trade Commission [FTC] announced today that Epic Games will have to pay out $520 million for "design tricks that lead millions of players to make unintentional purchases" in Fortnite.
The fine comes from what the FTC calls two separate "record-breaking" settlements. One is a $13 million fine for violating the Protection of Children's Online Privacy Protection [COPPA] rule, which imposes restrictions on websites and online services aimed at children under the age of 275. Epic is also due to its "dark patterns" repay customers $245 million will have to.
According to the FTC, Fortnite uses "violating default settings" and "deceptive interfaces" that "fool" players.
"Protecting the public, and especially children, from online privacy violations and dark patterns is a top priority for the Commission, and these enforcement actions make it clear to businesses that the FTC is taking drastic action against these illegal practices," said FTC chairman Lina Khan.
These "dark patterns" include tricking players into making unwanted in-game purchases through "illogical, inconsistent and confusing button configuration", including charging when waking from sleep mode. The FTC also says account holders can be charged unauthorized, and children are charged "hundreds of dollars" before parents realize what has happened. On that front, the FTC says Epic has "intentionally" hidden its cancellation and refund features while "ignoring over a million user complaints" about unfair payments.
Epic Games Fortnite's voice chat settings are also on target, Epic responds
In addition to microtransactions, Fortnite's voice chat was also a target of the FTC. The FTC alleges that Epic employees "urged" the company to change Fortnite's default settings to require users to opt in to voice chat, but the company "resisted" turning the feature off even when children were "harassed" while playing games, including sexually harassing them. the game."
As a result, Fortnite will need to disable voice and text communication for children and teens under 13, or allow parents through the privacy setting. Epic should also delete personal information collected from Fortnite users in violation of the COPPA rule and establish a "comprehensive privacy program."
Epic posted a long response on its own and, in part, he said: “No developer creates a game with the intent to end the game here. The video game industry is a place where gamer expectations are high and new ideas are paramount, with fast-moving innovation. The bylaws, written decades ago, do not specify how gaming ecosystems should work. The laws have not changed, but their practices have evolved and longstanding industry practices are no longer sufficient. We accepted this deal because we wanted Epic to be at the forefront. Consumer protection and providing the best experience for our players is our priority.”
Epic continued to take the allegations piecemeal, saying that "all game developers need to rethink the steps they're taking to simplify their payment flows," noting that it implemented a high privacy default setting in September. Epic also listed an updated chargeback policy, self-service refunds, instant cancellation of cosmetic purchases, and "paid random item loot boxes since 2019 and never gambling."
The fines are further evidence of the FTC's growing interest in the video game industry, which includes filing a lawsuit to thwart Microsoft's attempt to buy Activision Blizzard. Epic meanwhile, on issues like Apple taking 30 percent off both apps and in-app purchases. Locked in several lawsuits with Apple and Google.
Fortnite recentlylaunched Episode 4, which has been described as a “new beginning” thanks to a major graphics overhaul and other updates. Also, how will these refunds be made?Clarity has not yet been determined.
