Epic Games accepts settlements with the Federal Trade Commission for a cost of 520 million dollars

Epic Games accepts settlements with the Federal Trade Commission for a cost of 520 million dollars

Epic Games accepts settlements with the Federal Trade Commission for a cost of 520 million dollars

Epic Games is probably best known for being behind the hit video game Fortnite. The game has blown up so much, it’s kind of crazy. However, Epic just got slapped by the Federal Trade Commission. The FTC recently settled two cases against Epic Games Inc. that will cost the company $520 million. One of those lawsuits cost them $245 million in customer reimbursements for the use of “obscure templates” and billing that prompted customers to unintentionally purchase items. The FTC stated:

Fortnite’s counter-intuitive, inconsistent, and confusing button configuration has resulted in players incurring unwanted charges based on a single button press.

These tactics have led to hundreds of millions of dollars in unauthorized consumer charges.

For example, players could be loaded while attempting to wake the game from sleep mode, while the game is in a loading screen, or by pressing an adjacent button while simply attempting to preview an item.

Damn! This is really not good. Epic has agreed to reimburse the following three groups, and the FTC will post more information on a website and release information via email updates.

  • Parents whose children made an unauthorized credit card purchase on the Epic Games Store between January 2017 and November 2018

  • Fortnite Players charged for in-game currency (V-Bucks) for unwanted in-game items (such as cosmetics, llamas, or battle passes) between January 2017 and September 2022

  • Fortnite players whose accounts were blocked between January 2017 and September 2022 after disputing unauthorized charges with their credit card companies.

The other $275 million is a fine charged for the collection of personal information of Fortnite players under the age of 13 without notifying the child’s parents or obtaining parental consent. This fine is “the largest penalty ever imposed for breaking an FTC rule.”

Epic shared a statement discussing the deals and some of the changes they have made or are making. For example, they agreed with the FTC to have an explicit yes or no option for saving payment information. This isn’t the best look for Epic, but they’re taking it slow, which I’m sure is mitigating some of the damage. What do you think of these settlements? Is Epic doomed after this?

Via: PC Mag, AP News

by Tommy Williams
Source: Geek Tyrant

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