Epic Games Ordered to Pay $520 Million to FTC: What You Need to Know

Epic Games, the developer and publisher of the wildly popular video game Fortnite, is making headlines. Epic Games announced that it reached a settlement with the FTC that will require it to pay a total of $520 million dollars to resolve allegations of federal privacy violations and deceptive practices. This landmark settlement involves two distinct components:

• $275 Million Fine for COPPA Violations: Epic Games will pay $275 million for violating children's privacy law (COPPA). The FTC alleged that Epic Games collected personal information from children under 13 without parental consent.
• $245 Million for Deceptive Dark Patterns: Epic to pay $520 million to settle FTC charges on Fortnite. Game maker will pay $245 million for tricking users into making unintended purchases through what the FTC called “dark patterns” in its user interface. These dark patterns allegedly misled millions of players, including children, into making unwanted in-game purchases. Epic Games Inc. has agreed to pay $520 million to resolve Federal Trade Commission allegations that the Fortnite videogame developer violated online privacy.

This historic settlement underscores the FTC's commitment to protecting children's online privacy and holding companies accountable for deceptive practices. Epic Games, maker of the hit video game “Fortnite,” has agreed to pay a total of $520 million to settle US government allegations that it misled millions of players, including

The implications of this case are significant for the gaming industry and online platforms in general. It serves as a reminder of the importance of complying with COPPA and designing user interfaces that are transparent and avoid deceptive practices. The question now is how Epic Games will change its processes in the future.

Stay tuned for further updates on this developing story.