Epic to pay FTC $520M over Fortnite's shop and privacy practices
Epic Games reached a settlement with the FTC, in which the Fortnite developer will pay $520 million to the US trade commission.
The hefty payment is being made to "resolve concerns related to past designs of the Fortnite item shop and refund systems in Fortnite," following allegations that Epic's famous game violated the Children's Online Privacy Protection Act (COPPA). Per the allegations, Epic deployed several design tricks in order to "dupe millions of players into making unintentional purchases."
$245 million of that payment, according to Epic, will be distributed by the FTC to the developer's customers. The other $275 million will go right to the FTC to address the children's privacy-related concerns.
Among the violations stated by the FTC, Epic allegedly failed to notify parents that it was collecting personal data from young Fortnite players. It also reportedly implemented a system where players could be charged money while waking Fortnite from sleep mode or in a loading screen. Complaints were made by parents and players, which Epic reportedly ignored.
Along with the FTC fee, Epic will also be prohibited from charging players without asking for clear and explicit consent. Further, it'll be required to change its default privacy settings, making it so that voice and text chat are automatically turned off by default.
In a statement from the FTC, chair Lina Khan wrote that Epic "used privacy-invasive default settings and deceptive interfaces that tricked Fortnite users, including teenagers and children. "These enforcement actions make clear to businesses that the FTC is cracking down on these unlawful practices.”
Associate Attorney General Vanita Gupta added that the actions against Epic will "send a message to all
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