The Federal Trade Commission (FTC) has begun issuing payments totaling more than $72 million to Fortnite players affected by what the agency calls “unfair microtransaction practices” employed by the game’s developer, Epic Games. This payout is part of a larger $245 million settlement, which was originally revealed in late 2022, addressing deceptive design tactics used by the developer that tricked players into making unwanted purchases.
Background on FTC Action and Settlement
In December 2022, the FTC announced that Epic Games would pay a record $245 million to settle allegations that it employed deceptive “dark patterns” in Fortnite, luring players into making unintended purchases. These tactics reportedly included mechanisms that encouraged players to make accidental buys, as well as practices that allowed children to rack up unauthorized charges without parental oversight.
In addition to the settlement, Epic was fined $275 million for violating the Children’s Online Privacy Protection Act (COPPA), bringing the total financial penalty against the gaming giant to $520 million. These actions reflect the FTC’s growing focus on protecting consumers, particularly children, from deceptive practices in the gaming industry.
Refund Process and Details
Today, the FTC began distributing 629,344 payments to affected Fortnite players, totaling over $72 million. The average payment to consumers is $114, and payments are being delivered via PayPal or cash checks.
Consumers who were part of the settlement had the option to choose their preferred method of payment when submitting a claim. Those who selected PayPal will have 30 days to redeem their payments, while those receiving checks have 60 days to cash them. If you believe you were affected, you can still submit a claims form through the FTC’s website.
Epic Games’ Response
Despite the significant fines, Epic Games has pledged to change its business practices. The company has stated it will move away from using “dark patterns” and reaffirmed its commitment to fairness, transparency, and privacy in future transactions. In a statement on its website, Epic promised to continue ensuring that cancellations and refunds are simpler for players, with a focus on maintaining a safe and enjoyable gaming experience for all users.
Additionally, Epic is forging ahead with the development of more Fortnite content, including the launch of Fortnite OG, a version of the game that will bring back its earlier battle royale experience. Another highly anticipated feature, Fortnite Ballistic, a first-person competitive mode, is set for early access beginning December 11, 2024.
FTC’s Position and Ongoing Crackdown
FTC Chair Lina Khan remarked that protecting the public from deceptive online practices, especially those affecting children, is a top priority for the Commission. She added that the FTC’s enforcement actions underscore the agency’s resolve to crack down on unlawful practices in the gaming industry. This is part of the FTC’s broader strategy to hold companies accountable for unfair business practices, particularly those targeting vulnerable consumers.
The Fortnite settlement serves as a powerful example to other gaming companies, signaling that the FTC is serious about consumer protection and is willing to enforce strict measures against misleading practices in digital gaming environments.
The Bigger Picture: Consumer Protection in Gaming
The Fortnite settlement represents a significant moment in the ongoing conversation about fairness in online gaming. The actions taken by the FTC demonstrate that consumer protection will remain a key focus as the digital entertainment landscape evolves. For Epic Games, this settlement is both a financial and reputational blow, but it also serves as a turning point for the company to regain the trust of its millions of players by implementing more transparent business practices.
As the gaming industry continues to grow, it’s clear that regulatory scrutiny will intensify. Companies, large and small, will need to be cautious in their business tactics, ensuring they comply with consumer protection laws and avoid exploiting vulnerable players, particularly minors.
While the financial penalties Epic Games has faced are substantial, the FTC’s refund payout to Fortnite players signals a major win for consumers who were misled by unfair microtransactions. The action is part of a broader effort to hold gaming companies accountable and ensure that players are treated fairly in digital environments. As Epic moves forward with new Fortnite content, it remains to be seen how the company will implement its promised changes, but the public and the FTC will undoubtedly be keeping a close eye.
