Fortnite Agrees to Pay $520 Million to Settle FTC Charges

Epic Games, the creator of the famous video game “Fortnite,” agreed to pay the FTC $520 million in penalties and refunds over charges that the firm violated a children’s privacy statute and “dupe[d] millions of gamers into making inadvertent payments,” according to the agency.

The $520 million settlement includes $245 million in consumer refunds and a $275 million penalties for gathering personal information on Fortnite users under the age of 13 without alerting or obtaining consent from their parents. It’s the largest penalty ever levied for breaching an FTC regulation.

“Epic employed privacy-invasive default settings and misleading interfaces that deceived Fortnite players, including teens and minors,” FTC Chair Lina Khan said in a statement.

“Protecting the public, and especially minors, from online privacy intrusions and dark patterns is a high concern for the commission, and these enforcement actions make clear to businesses that the FTC is clamping down on these unlawful activities.”

Fortnite, a battle royale game that became viral following its release in 2017, has over 400 million players worldwide. The game is normally free to download, but it generates revenue through in-game purchases of goods like costumes and dancing techniques.

The FTC stated that the game, which pairs strangers from across the world for interactive combat, was intended for children and teenagers, but its producers failed to comply with parental permission regulations despite making improvements to address internal and public concerns.