“We accepted this agreement because we want Epic to be at the forefront of consumer protection and provide the best experience for our players.”įTC Chair Lina Khan said the settlement reflects the agency’s heightened focus on privacy and so-called “dark patterns,” a term used to describe design elements intended to nudge users toward a company’s preferred result. “No developer creates a game with the intention of ending up here,” Epic said in the blog post. In a blog post addressing the twin settlements, Epic said the agreement reflects an evolution in how US laws are applied to the video gaming industry. That agreement is the largest administrative order in FTC history, the FTC added. In a second and separate settlement, Epic will pay $245 million as refunds to consumers who were allegedly harmed by user-interface design choices the FTC claimed were deceptive. We accepted this agreement because we want Epic to be at the forefront of consumer protection and provide the best experience for our players," Epic said in a statement.How companies subtly trick users online with 'dark patterns'
"The laws have not changed, but their application has evolved and long-standing industry practices are no longer enough.
Epic games settlement code verification#
Only in 2019, "long after Epic obtained empirical evidence pointing to large numbers of Fortnite players" under the age of 13, did Epic introduce an age verification system. "Of course, to enable parental controls, parents would first need to know they existed," the FTC complaint noted. Nonetheless, it represents a sizable rap for a company that collected $5.5 billion in profit between 20, according to court documents reviewed by The Verge. The settlement is large, even by the FTC's standards, but nowhere near the $5 billion fine that Meta, formerly known as Facebook, was ordered to pay in 2019. "All the while, kids have been bullied, threatened, and harassed, including sexually, through Fortnite," the FTC complaint read. The FTC called Epic's attempts to address the harassment issue on-platform as "weak-willed," noting that it took two years after launch for Epic to "finally parental controls to the game."Įpic allegedly failed to make decisions that would safeguard children and meet federal regulations, despite having research that indicated that some features, including voice chat, presented "a risk in terms of negative social behavior," according to Epic internal reports cited by the FTC. "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," FTC chair Lina Khan said in a statement.Įpic will pay two fines, including a $245 million fine against Fortnite's in-game store and refund systems, and another $275 million fine to address child privacy concerns.Īt the core of the settlement was the FTC's argument that Epic made deliberate decisions to appeal to children, citing "music, celebrity, and brand partnerships," which included deals with Travis Scott, Ariana Grande, and an extensive collection of Fortnite-themed merchandise.ĭespite the deliberate decision to market to children, the FTC said Epic failed to "cure," or address, COPPA violations.
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