The Federal Trade Commission (FTC) has mandated Epic Games, the creator of Fortnite, to pay a record-breaking £192.19 million ($245 million) in a settlement over allegations of deceptive billing practices.
The settlement, the largest refund in a gaming-related case, addresses claims that Epic Games used "dark patterns" to mislead Fortnite players and other customers into making unintended purchases.
How Much Will Be Refunded?
Starting Monday, the FTC announced that Epic Games will begin distributing over 629,000 payments, with more to follow in subsequent waves.
Approximately half of these refunds will be sent via PayPal, while the remainder will be issued as cheques.
The initial round of payments, totalling £56.48 million ($72 million), will provide recipients with an average refund of around £89.43 ($114) each.
PayPal recipients must claim their refunds within 30 days, while those receiving cheques have a 90-day redemption period, as outlined in Epic Games' refund policy.
Customers who submitted claims online can expect refunds through their chosen payment method.
PayPal users should ensure they claim their funds promptly, while cheque recipients are advised to cash their cheques within the specified time frame.
What Did Epic Games Do?
The FTC alleged that Epic Games employed deceptive tactics, including the use of "dark patterns" to manipulate players into unintentional purchases.
These practices were said to violate the company's own refund policies.
For example, the FTC pointed to Fortnite's "counterintuitive, inconsistent, and confusing button configuration," which reportedly caused players to incur unwanted charges with a single button press.
In some cases, players were charged when waking the game from sleep mode or accidentally pressing a button while previewing an item.
"Epic used privacy-invasive default settings and deceptive interfaces to trick Fortnite users, including teenagers and children," said FTC Chair Lina M. Khan in a December 2022 statement.
"Protecting the public, especially children, from online privacy invasions and dark patterns is a top priority for the Commission."
The settlement also highlights broader concerns about how online platforms handle users' data and privacy.
"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 clear message to online providers that collecting children's personal information without parental consent will not be tolerated."
Epic Games' Refund Policy Under Scrutiny
Fortnite, though free to play, generates significant revenue through in-game purchases such as costumes, dance moves, and other customisable features.
With a global user base exceeding 400 million, the game has faced increasing scrutiny over its payment practices.
The FTC filed two separate complaints against Epic Games, alleging that the company engaged in illegal practices, including violating its refund policy.
According to FTC Bureau of Consumer Protection Director Samuel Levine, "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."
Under the settlement terms, Epic Games must revise its default settings, refund millions to affected consumers, and pay a record-breaking penalty for privacy violations and deceptive practices.
This case serves as a stark reminder to businesses that regulatory bodies are intensifying their crackdown on unfair practices in digital markets.
It also underscores the importance of transparent, consumer-friendly policies in the increasingly complex gaming industry.
