Fortnite creator Epic Games fined $520 million in record-breaking FTC settlement
![Epic Games logo displayed on a phone screen](https://cdn.mos.cms.futurecdn.net/ddSB6eRt6dQsLcK9e89jVF-415-80.jpg)
Epic Games Inc., the video game developer behind Fortnite, has agreed to pay $520 million to settle allegations from the Federal Trade Commission that it violated online privacy laws for children and purposely misled customers into making unintended purchases, The Wall Street Journal reports.
The agreement covered two separate civil complaints the FTC had filed against Epic. The first complaint alleged that the company violated the federal Children's Online Privacy Protection Act by collecting personal information from Fortnite players under 13 without obtaining parental consent. The lawsuit also claimed that the game illegally defaulted to enabling voice and text chat communication features for minor players. The FTC said Epic put children at risk by exposing them to strangers, leading some kids to be "bullied, threatened, harassed, and exposed to dangerous and psychologically traumatizing issues such as suicide." Epic will be charged a $275 million fine for the alleged COPPA violations, the largest civil penalty linked to the privacy law, per the FTC.
The second complaint, filed in administrative court, alleged that the company engaged in "dark patterns," or tactics that trick players into paying for goods and make it difficult to cancel the transaction. The FTC said Epic used a variety of tricks to drive unintended purchases in Fortnite, including inconsistent and confusing button configurations. "These tactics led to hundreds of millions of dollars in unauthorized charges for consumers," the FTC said in the complaint. Epic agreed to refund $245 million to customers to resolve this complaint.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
![https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516-320-80.jpg)
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"No developer creates a game with the intention of ending up here," Epic said. "We accepted this agreement because we want Epic to be at the forefront of consumer protection and provide the best experience for our players."
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Theara Coleman has worked as a staff writer at The Week since September 2022. She frequently writes about technology, education, literature and general news. She was previously a contributing writer and assistant editor at Honeysuckle Magazine, where she covered racial politics and cannabis industry news.
-
Today's political cartoons - September 7, 2024
Cartoons Saturday's cartoons - football widows, meddling kids, and more
By The Week US Published
-
Smoking ban: the return of the nanny state?
Talking Point Starmer's plan to revive Sunak-era war on tobacco has struck an unsettling chord even with some non-smokers
By The Week UK Published
-
Crossword: September 7, 2024
The Week's daily crossword puzzle
By The Week Staff Published
-
Controversy is brewing over a lawsuit involving Hermès' luxury bags
Talking Points The lawsuit alleges the company only sells bags to people with a 'sufficient purchase history'
By Justin Klawans, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published