The FTC announced that Epic Games has agreed to pay $520 million, due to "violating children's privacy laws" and "tricking users into making unwanted charges".
Quite a large fine overall split between:
- $275 million penalty for violating children's privacy law.
- $245 million in refunds for tricking users into making unwanted charges.
Recently, Epic Games made a change to their account system for younger players (that caused the Heroic Games problems) and changed a bunch of privacy settings which they did as a result of this.
Some record-breaking fines there, as the FTC said in the announcement. The $275 million is a traditional fine, but the $245 million appears to be going towards refunds to customers.
From the press release:
"As our complaints note, Epic used privacy-invasive default settings and deceptive interfaces that tricked Fortnite users, including teenagers and children," said FTC Chair Lina M. Khan. "Protecting the public, and especially children, from online privacy invasions and dark patterns is a top priority for the Commission, and these enforcement actions make clear to businesses that the FTC is cracking down on these unlawful practices.”
“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.”
Epic also released their own statement here.