Epic Games, the creator of the popular video game Fortnite, has reached a settlement agreement with the Federal Trade Commission (FTC) in the amount of $520 million. As part of the settlement, Epic Games will be required to provide refunds to players who were allegedly deceived into making unintended purchases on the platform. Approximately $245 million has been allocated specifically for these refunds.
The FTC has begun notifying more than 37 million individuals via email to inform them if they are eligible for compensation. This process is expected to take up to one month to complete. Players who believe they were impacted will have until January 17, 2024, to submit a claim for a refund through the FTC’s website.
According to the FTC, this settlement represents one of the largest refunds related to a gaming case to date. The commission had previously accused Epic Games of using deceptive tactics to encourage Fortnite players, including underage individuals, to make in-game purchases without parental consent. Additionally, the company was found to have locked the accounts of consumers who disputed unauthorized charges.
As a result of violating the Children’s Online Privacy Protection Act (COPPA), Epic Games was ordered to pay $275 million in addition to the refunds. The COPPA is a federal law in the United States that aims to protect the privacy of children under the age of 13 online.
In conclusion, the settlement between Epic Games and the FTC will provide significant refunds to Fortnite players who were affected by deceptive practices. Additionally, this case serves as a reminder of the importance of safeguarding the privacy and financial well-being of young gamers.
Sources:
– Federal Trade Commission (FTC)
– Children’s Online Privacy Protection Act (COPPA)
