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FTC says Epic Games was the developer Fortnite and Fall Guys. They used design tricks known as “dark patterns” to trick millions into buying unintentionally.
Federal Trade Commission (FTC), has announced that will be charged with $520 million for allegedly violating the Children’s Online Privacy Protection Act ( ). The Epic Games class action lawsuit was approved by a Canadian court.
Was it the issue?
FTC about issues related to the option for online purchasing. Although it is not certain that Epic Games created the addictive game intentionally, there are still possibilities that its distributor or creator were aware of the problem.
The FTC expressed concern about Epic’s voice and live communication capabilities. This enabled minors to harassment and abuse by default.
Epic Games did not have a mechanism that would prevent adults and children from playing together online. FTC claims that children suffered bullying and threats and were . They also became susceptible to suicidal thinking.
Fine Details
FTC says that the developer used dark patterns to trick millions of gamers into making unintentional purchase.
The $520 million fine will be split into . The $275 million COPPA penalty was the largest ever for violating an FTC regulation. $245 million is to be paid to Epic Games for refunding customers who used dark billing methods.
It is important to mention that this amount is the largest refund amount the FTC has imposed in gaming cases. Both fines have been paid by the company.
A Canadian law firm filed a against the game developer for creating Fortnite in 2019 with intent to be addictive.
The case was delayed as the court waited to decide if they were allowed to proceed. The court seems to have now ruled that plaintiff’s claims were not “manifestly unfounded”.
Epic Games was hacking and failure to protect Fortnite accounts.
Epic Games Statement
Epic Games stated in its that it had accepted the agreement as it believed it would encourage consumer protection.
“Statutes that were written many decades ago do not specify the way gaming ecosystems must operate. While the laws are still valid, their applications have changed and industry practice has changed. This agreement was reached because Epic wants to provide the best possible experience and consumer protection for its players.
Epic Games says it has improved its payments flows. Epic Games will now offer an option to save payment data by allowing users to choose whether they want the Yes or No button. Epic Games will offer an option to cancel purchases instantly and allow users to access funds via self-service.
Epic has recently introduced Cabined Accounts to address the controversy. Players can register using a birthdate, and this will be compared to their digital consent age in their respective countries.
Chat and purchase features have been disabled by the gaming company. Parents will receive an email notification when a child registers so they can change their children’s settings. This option is available to Fall Guys, Fortnite and Rocket League.
