Epic Games Fined More Than $500 Million Over Fortnite's 'Unfair' Microtransaction Practices
Epic Games will have to pay $520 million over "design tricks...to dupe millions of players into making unintentional purchases" in Fortnite, the Federal Trade Commission [FTC] announced today.
The fine stems from what the FTC calls two separate "record-breaking" settlements. One is a $275 million fine for violating the Children's Online Privacy Protection [COPPA] rule, which imposes limitations on websites and online services directed to children under 13-years-old. Epic will also have to pay $245 million in refunds to customers over its "dark patterns."
According to the FTC, Fortnite uses "privacy-invasive default settings" and "deceptive interfaces" that "tricked" players.
"Protecting the public, and especially children, from online privacy invasions and dark patterns is a top priority for the Commission, and these enforcement actions make clear to businesses that the FTC is cracking down on these unlawful practices," said FTC chair Lina Khan.
These "dark patterns" include tricking players into making unintended in-game purchases through a "counterintuitive, inconsistent, and confusing button configuration," including being charged while waking up from sleep mode. The FTC also says that account holders can be charged without authorization, and that children have racked up "hundreds of dollars" in charges before parents were aware of what was happening. On that front, the FTC says that Epic "ignored more than one million user complaints" over wrongful charges while "purposefully" obscuring cancel and refund features.
In addition to microtransactions, Fortnite's voice chat was in the FTC's crosshairs. The FTC claims that Epic employees "urged" the company to change Fortnite's default settings to require users to opt in for
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