Fortnite's Parent Company, Epic Games, Agrees to Settle FTC Allegations Over Unwanted In-Game Purchases

In a significant development, Epic Games, the renowned video game developer behind the incredibly popular battle royale game Fortnite, has agreed to pay a settlement to resolve allegations brought forth by the Federal Trade Commission (FTC). The FTC alleged that Epic Games had engaged in unlawful practices, charging players for unwanted in-game purchases without their consent.

Background

The FTC's allegations against Epic Games stem from a class-action lawsuit filed against the company in 2020. The lawsuit claimed that Fortnite's parental controls were not effective in preventing children from making unauthorized purchases within the game. This led to a surge in complaints, with many players and parents expressing frustration over the lack of control they had over their children's gaming experiences.

FTC Allegations

The FTC alleged that Epic Games' monetization strategy for Fortnite was unfair and deceptive. Specifically, the agency claimed that:

• The game's parental controls were not robust enough to prevent children from making purchases without adult supervision.
• Epic Games did not provide clear and conspicuous notices to players about their in-game purchases, including those made through its "Save Your Progress" feature.
• The company failed to obtain informed consent from parents before allowing their children to make certain purchases.

Settlement Terms

Epic Games has agreed to settle the FTC's allegations by paying a settlement of $520 million. This amount will be paid over a period of five years, with the first payment of $104 million already made.

In addition to the monetary settlement, Epic Games has also agreed to implement changes to its monetization strategy for Fortnite. These changes include:

• Improved parental controls: Epic Games will enhance its parental controls to provide more effective protection for children against unauthorized in-game purchases.
• Clearer notices: The company will ensure that players and parents receive clear and conspicuous notices about their in-game purchases, including those made through the "Save Your Progress" feature.
• Informed consent: Epic Games will obtain informed consent from parents before allowing their children to make certain purchases.

Impact

The settlement of this case marks a significant development for the video game industry. It highlights the importance of robust parental controls and clear notices in online games, particularly those targeting children. The agreement also underscores the need for companies like Epic Games to prioritize player safety and well-being.

Conclusion

Epic Games' agreement to settle the FTC's allegations is a step towards restoring trust with players and parents. By implementing changes to its monetization strategy, the company demonstrates its commitment to providing a safe and enjoyable gaming experience for all users. As the video game industry continues to evolve, it is essential that companies prioritize player safety and well-being above profits.

What's Next?

The settlement of this case sets a precedent for the video game industry. Companies like Epic Games must take proactive steps to address concerns around online safety and monetization strategies. As the gaming landscape continues to shift, we can expect more regulations and guidelines to emerge, aiming to protect players and parents alike.

By staying informed about regulatory developments and industry trends, players and parents can make more informed decisions when choosing games and online services. Whether you're a seasoned gamer or just starting out, it's essential to prioritize your safety and well-being in the virtual world.