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Epic Games, developer of the popular video game “Fortnite,” reached a $520 million settlement with the U.S. Federal Trade Commission (FTC) for allegations that it violated children’s privacy rights and manipulated users into making unauthorized purchases, according to the FTC Monday.
The settlement consists of two separate payments, $275 million for violating the Children’s Online Privacy Protection Act (COPPA) and $245 million to refund customers that Epic took advantage of via manipulative billing practices, the FTC reported Monday. Epic is also required to disable chat features in its games for users under 13, establish new privacy rules and delete all previously-collected personal information belonging to children.
“As our complaints note, Epic used privacy-invasive default settings and deceptive interfaces that tricked Fortnite users, including teenagers and children,” FTC Chair Lina M. Khan said in an FTC press release. “Protecting the public, and especially children, from online privacy invasions and dark patterns is a top priority for the Commission, and these enforcement actions make clear to businesses that the FTC is cracking down on these unlawful practices.
