Epic Games Has to Pay $275 Million Following “Concerns Related to Children’s Privacy”

Epic Games has reached an agreement with the Federal Trade Commission (FTC) and the Fortnite publisher is due to pay the FTC a staggering $245 Million USD due to concerns around the design of the Fortnite item shop and its refund systems. Epic will also need to pay $275 Million USD to resolve concerns of the FTC surrounding children’s privacy in Fortnite.

Epic Releases Official Statement on FTC Agreement

In an official statement Epic Games revealed, “Saving payment information by default is a common way to streamline the checkout process, so players do not have to re-enter their payment method every time they make a purchase. We’ve agreed with the FTC to change this practice, and we now offer an explicit yes or no choice to save payment information.”

The publisher has also implemented a system that prevents automated transactions. Players need to re-confirm purchases and it has also implemented instant purchase cancellations and self-service refunds.

One of the biggest talking points about the agreement between the FTC and Epic Games was children’s privacy. Voice chat is enabled by default and it can lead to children being exposed to toxicity. 

Here are all of the changes Fortnite has implemented to adhere to FTC guidelines: 

• No pay-to-win or pay-to-progress mechanics in player-versus-player experiences.

• No paid random item loot boxes since 2019 and no gambling ever. 

• A Return Tickets system that enables self-service refunds on eligible digital goods without the need to specify a reason.  

• Instant cancellations of cosmetic purchases made with V-bucks, with a recently extended cancellation window. 

• A hold-to-purchase mechanic for all in-game purchases in Fortnite.

• An updated chargeback policy. 

• An explicit yes/no choice to save payment information.

• Parental Controls that are easily accessible in the main Fortnite Lobby menu and the Epic Account portal. 

• Parental Controls that include the option to require a PIN to send and accept friend requests and enable parents to authorize purchases before they are made. 

• A daily spending limit for players under the age of 13.

• Granular privacy options for chat, which include “Everybody," “Friends and Teammates,” “Friends Only,” or “Nobody.” 

• Cabinet Accounts that provide a tailored experience that is safe and inclusive for younger players while they wait for parental consent.

• Settings that default to the highest privacy option for players under the age of 18, including voice and text chat defaulting to “Nobody.”

The publisher stated, “We will continue to be upfront about what players can expect when making purchases, ensure cancellations and refunds are simple, and build safeguards that help keep our ecosystem safe and fun for audiences of all ages.” 

The money that will be paid to the FTC will be distributed to Epic customers “at their discretion.”

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