The Federal Trade Commission this week fined Epic Games $245 million and ordered Fortnite developers to compensate consumers who made unwitting purchases on digital stores. The settlement, first announced in December, is now final.
“Fortnite’s counter-intuitive, inconsistent, and confusing button configuration caused players to be charged unnecessarily with a single button press,” the FTC wrote in a statement. The complaint also accuses Epic of allowing underage players to make frictionless, unauthorized purchases without parental consent.
The $245 million settlement — a hefty sum, but not more than the $5 billion fine that regulators imposed on Facebook in 2019 — will be used to refund customers. The FTC order also requires Epic to stop using “digital design tricks,” such as dark pattern designs, obtain affirmative consent for digital purchases, and disput claims for digital goods and services in customer accounts. Blocks Epic from locking the .
The latest settlement now finalized follows a $275 million fine proposed by the agency in December for the company processing accounts of Fortnite players under the age of 13. The FTC alleged that Epic violated the Children’s Online Privacy Protection Act (COPPA) by collecting full names and contact information from children without parental consent. The settlement also cited Epic’s decision to launch Fortnite without parental controls, with extra protection for younger users who make up the bulk of its player base.
“The Department of Justice takes its mission to protect consumers’ data privacy rights very seriously,” Associate Attorney General Vanita Gupta previously said of the double settlement. “This proposed order sends a message to all online her providers that collecting a child’s personal information without parental consent is unacceptable.”
In early December, just before the FTC announcement, Epic announced it would be introducing a new account type designed to protect young players. That feature, called ‘Cabin Accounts’, has been added to Fortnite, Rocket League, and Fall Guys. Game Maker’s three popular online multiplayer titles.
“All players worldwide will be asked to provide their date of birth upon login,” Epic wrote in a blog post at the time. “If someone indicates that they are under the age of 13 or the age of digital consent in their country, whichever is higher, that account will become a Cabin Account and will require a parent or guardian to initiate the parental consent process. You will be asked to provide your e-mail address.” Chat, digital purchases, and other features are disabled for Cabin accounts until parental consent is obtained.
Protections that rely on users self-reporting their age are imperfect solutions at best. But while gaming companies and social media companies alike create systems that consider the safety of children (and the regulatory risks that come with it), young users will inevitably spend their time in virtual spaces online. you need to be able to access it.
Epic games like Fortnite are already established among younger users, but the company is clearly doubling down on the youngest subset of those players.Last year, Epic announced a partnership with LEGO. and built “an immersive, creatively inspiring, and engaging digital experience that children of all ages can enjoy together.” This is his collaboration in the Metaverse that could rival his Roblox rival.
