Fortnite maker Epic Games penalized a record $520 million for "tricking users" and violations
Epic Games fined $520 million by FTC over privacy of children and store and refund systems.
WASHINGTON, USA - (TechtUSA) The US Federal Trade Commission (FTC) has announced that Epic Games, the developer of the popular video game Fortnite, has been fined $520 million for allegedly violating children's online privacy rights and using design tricks to allow users to make unwanted payments.
Epic Games will pay $520 million in fines to settle with FTC
The Federal Trade Commission (FTC) has claimed that Epic Games matched children and teenagers "with strangers" and led them “dangerous and psychologically traumatizing issues,” where Epic games failed to meet sufficient parental control systems for children, while not complying with federal regulations.
FTC announced that Epic will pay two fines. The first fine will cost $245 million that comprises Fornite's game store and refund system, where Epic alleged to trick users to pay undesired payments. The second fine is about the violating privacy of children that mentioned above.
“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 stated.
This settlement is reviewed as intensely large for Epic Games, or even by the standards of FTC. However, to recall, Meta was fined $5 billion over privacy violations.
“The laws have not changed, but their application has evolved and long-standing industry practices are no longer enough. 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 Games said.
