Fortnite maker Epic Games to pay $520M in FTC settlement

Image Source: whqr.org

Epic Games has consented to pay $520 million to resolve claims made by the FTC.

FTC claimed Epic Games intentionally violated children’s online privacy laws and tricked users into making unintended purchases.

According to the FTC, it is the biggest fine it has ever assessed for breaking a rule it has enforced.

Epic Games has agreed to pay $275 million for collecting the personal information of children under the age of 13 without first obtaining their parent’s verifiable consent.

Epic will fork out $245 million in payments to customers who the FTC claims were injured by user-interface design decisions that were misleading.

The FTC and Epic have reached a tentative agreement that restricts Epic from charging customers without their permission or utilizing dark patterns.

It also bans Epic from locking users out of their accounts in reaction to users’ refund requests with credit card providers disputing erroneous charges.

Epic will also be prohibited from allowing text and voice communication for kids and teenagers without parental approval.

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