Washington, D.C. – The Federal Trade Commission (FTC) is distributing over $72 million in refunds to consumers who were tricked into making unwanted purchases while playing the popular video game Fortnite. The refunds are part of a settlement reached with Epic Games, the game’s developer, to resolve allegations of deceptive business practices, including violations of privacy laws and the use of design tactics known as “dark patterns.”
The settlement, initially announced in December 2022, comes after the FTC accused Epic Games of violating the Children’s Online Privacy Protection Act (COPPA) and using manipulative game features to cause players, particularly children and teens, to rack up unauthorized charges. The refunds are part of a $520 million relief package, which includes a record $275 million penalty for COPPA violations and an additional $245 million designated for consumer refunds.
The FTC’s complaint against Epic Games outlines two major areas of concern. First, the company allegedly violated COPPA by collecting personal information from children under 13 without obtaining parental consent, a requirement under the law. The FTC also charged that Fortnite enabled risky and invasive default settings, such as real-time voice and text chat for children and teens, making them vulnerable to online harassment and exposure to harmful content.
The second issue raised by the FTC involves “dark patterns”—design features intentionally crafted to manipulate players into making unintended purchases. According to the FTC, Epic Games made it difficult for users to navigate the game without accidentally making purchases. For example, users could be charged for in-game items simply by pressing the wrong button during gameplay, such as when waking the game from sleep mode or while the game was in a loading screen.
These deceptive tactics led to millions of dollars in unauthorized charges, with some players, particularly children, unknowingly running up large bills. The FTC alleges that Epic Games did little to resolve these issues despite receiving more than one million user complaints about wrongful charges.
“Epic put children and teens at risk through its lax privacy practices, and cost consumers millions in illegal charges through its use of dark patterns,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “This settlement will ensure that the company makes significant changes to its practices and refunds consumers who were harmed by these unlawful tactics.”
The FTC’s action against Epic Games involves two landmark settlements. The $275 million penalty for violating COPPA is the largest ever imposed for such a violation. Additionally, the $245 million in refunds for consumers represents the largest refund amount the FTC has ever issued in a gaming-related case.
As part of the settlement, Epic Games is required to adopt new privacy measures, including setting stricter defaults for children and teen users. Voice and text communication will be turned off by default, and parents will need to give explicit consent for these features to be activated. The company will also be required to delete personal data collected from children without parental consent and to implement an independent privacy program that ensures compliance with the FTC’s rules.
The FTC is sending the first round of refunds to 629,344 eligible consumers, with the average refund amount being approximately $114. Half of the refunds will be issued via PayPal, while the other half will be distributed by check. Consumers who received a PayPal refund are encouraged to redeem it within 30 days, while those with checks have 90 days to cash them.
“We are committed to ensuring that consumers harmed by these deceptive practices get their money back,” said FTC Chair Lina M. Khan. “This settlement sends a strong message to businesses that manipulating consumers through dark patterns and violating privacy protections will not be tolerated.”
Consumers who believe they are eligible for a refund but have not yet received one can still submit a claim through the FTC’s website at www.ftc.gov/fortnite. The FTC has also set up a dedicated hotline, managed by Rust Consulting, Inc., for refund inquiries: 1-833-915-0880.
“The Justice Department takes very seriously its mission to protect consumers’ data privacy rights,” said Associate Attorney General Vanita Gupta. “This proposed order sends a message to all online providers that collecting children’s personal information without parental consent will not be tolerated.”
For further information on the refund process, consumers can visit the FTC’s website or contact Rust Consulting, Inc., at the provided number.
