FTC Refunds $72 Million to Fortnite Players!!
The U.S. Federal Trade Commission (FTC) announced on monday that it is distributing the first round of refunds to consumers who were deceived into making unwanted purchases in Fortnite, with a total payout of over $72 million. This follows a settlement with Epic Games, the developer of Fortnite, which was reached in december 2022 and finalized in march 2023. The settlement included a hefty fine of $245 million, addressing the game’s use of “dark patterns”—manipulative design tactics that trick users into making unintended purchases.
Dark Patterns and Deceptive Design
The FTC investigation into Epic Games revealed that the company employed confusing and inconsistent button configurations, leading many players, especially children, to make purchases unintentionally. The design flaws included instances where players were charged while the game was still loading after being woken from sleep mode, or when they mistakenly pressed buttons intended for previewing items.
These deceptive practices led to many unauthorized charges, often without the knowledge or consent of parents. The FTC emphadata-sized that these tactics violated consumer protection laws by taking advantage of vulnerable users, including minors, and causing them to rack up charges without proper consent.
Settlement and Refund Process
As part of the settlement, Epic Games agreed to cease the use of such dark patterns and implement changes to its wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital purchase system. The company is now required to obtain explicit consent before processing wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital purchases and is prohibited from locking accounts of customers who dispute charges. Additionally, Epic must make restitution to affected customers.
The $72 million refund marks the first phase of the settlement's payment plan, with over 629,344 consumers receiving their refunds. Payments are being distributed equally between PayPal and checks, with consumers having chosen their preferred payment method when they filed claims. Affected individuals have been instructed to redeem PayPal payments within 30 days and to cash checks within 90 days.
FTC's Continued Focus on Dark Patterns
The FTC's crackdown on dark patterns has extended beyond Fortnite, as the Commission has increasingly targeted companies using these manipulative tactics to deceive consumers. In recent months, the FTC has released findings on subscription apps employing dark patterns and has taken action against other companies like neobank Dave and Amazon. The commission’s heightened scrutiny aims to curb deceptive practices that exploit consumers’ trust and ensure fairer business practices.
Epic Games, in particular, has been held accountable for its deceptive design choices that impacted its Fortnite players, setting a significant precedent for future cases involving consumer manipulation through wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital interdata-faces.
With further payments planned in the future, the FTC is ensuring that consumers who were misled by Epic Games' tactics are compensated for their losses, as the agency continues its efforts to protect consumers from unfair wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital practices.