Epic Games will pay $520 million to settle FTC's 'Fortnite' case

engadget.com:

Fortnite maker Epic Games will pay $520 million to settle allegations that it violated the Children’s Online Privacy Protection Act (COPPA) and "tricked millions of players into making unintentional purchases," using deceptive design strategies called dark patterns, the Federal Trade Commission said. The agency notes that there are two separate settlements, each of which broke FTC records.

Epic will pay $275 million for allegedly violating the COPPA rule as part of a proposed federal court order. The agency says that's the largest penalty it has obtained to date over a rule violation. Epic will also refund customers $245 million over its billing practices and use of dark patterns. The FTC claims that's the largest refund in a gaming-related case and its biggest administrative order to date. It will decide whether to finalize the consent order after a 30-day public comment period.

"As our complaints note, Epic used privacy-invasive default settings and deceptive interfaces that tricked Fortnite users, including teenagers and children," FTC chair Lina M. Khan said in a statement. "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.”

Fortnite has been a colossal success for Epic. The game generated $9 billion in profit between 2018 and 2019, and $5.1 billion in gross revenue in 2020.

The FTC claimed that Epic violated the COPPA rule by collecting personal data from Fortnite players aged under 13 without notifying or seeking consent from their parents. In its complaint, the FTC said parents who wanted Epic to delete personal information