Fortnite settles FTC allegations over duped purchases for $520M

Fortnite purchases settlement overview: 

• Who: Fortnite creator Epic Games has agreed to pay $520 million to resolve allegations made by the Federal Trade Commission. 
• Why: The settlement was made to resolve claims Epic Games violated the Children’s Online Privacy Protection Act and manipulated its players into making in-game purchases by using “dark patterns.” 
• Where: The lawsuit was filed in North Carolina federal court. 

Fortnite video game creator Epic Games has agreed to a $520 million settlement to resolve the Federal Trade Commission’s claims that the company tricked its players into making purchases and failed to get parental consent. 

Regulators accused Epic Games of using “dark patterns” to manipulate millions of Fortnite players into making unintentional in-game purchases for items and actions like costumes and dance moves, Law360 reported. 

The FTC claimed Epic Games also violated the Children’s Online Privacy Protection Act (COPPA) by allegedly collecting the personal data of players under the age of 13 without first notifying their parents or getting their consent. 

Further, Epic Games was accused of violating the FTC’s rules regarding unfair business practices by allegedly default enabling real-time voice and text chat communications for child and teenaged players. 

“Ultimately, Epic’s matchmaking children and teens with strangers while broadcasting players’ account names and imposing live on-by-default voice and text communications has caused substantial injury,” the Fortnite lawsuit stated. 

Epic Games to pay $275 million penalty for COPPA violation, $245 million to refund Fortnite players 

The terms of settlement, meanwhile, include a $275 million penalty for violating COPPA and a $245 million fine that will go toward compensating consumers in the form of refunds, Law360 reported. 

Epic Games will also reportedly be required to make sure Fortnite’s voice and text chat communications feature is automatically turned off for teenage and child players as the default setting. 

Epic Games was involved in a separate settlement agreement last year that was worth $26.5 million and resolved claims the company violated consumer protection laws and misrepresented the value of in-game items available for purchase in its Fortnite and Rocket League video games. 

Have you made an in-game purchase while playing Epic Games’ Fortnite video game? Let us know in the comments! 

The Fortnite purchases lawsuit is United States of America v. Epic Games Inc., Case No. 5:22-cv-00518, in the U.S. District Court for the Eastern District of North Carolina. 

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