The Federal Trade Commission (FTC) announced the distribution of refund checks to U.S. consumers who were deceptively charged for unwanted in-app purchases in Fortnite, developed by Epic Games. This action stems from a 2022 settlement where Epic Games agreed to pay $520 million to address concerns regarding children’s privacy and manipulative payment practices within the popular online game.
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FTC Alleges Deceptive Design Tactics Led to Unintended Purchases
The FTC’s complaint centered on Epic Games’ alleged use of “dark patterns,” deceptive interface designs that tricked players, including children, into making unintentional purchases with a single button press. These misleading designs often resulted in charges for actions as simple as waking the game from sleep mode or previewing an item. Furthermore, the FTC accused Epic Games of blocking access to purchased content for users who disputed the charges with their credit card companies.
$245 Million Designated for Customer Refunds; First Batch Distributed
The $520 million settlement encompassed a $275 million fine for violating children’s online privacy laws and a $245 million fund dedicated to customer refunds. The FTC recently initiated the first wave of these refunds, issuing over 629,00 payments totaling more than $72 million. Eligible recipients will receive payments via PayPal (redeemable within 30 days) or physical checks (cashable within 90 days), with the average refund amounting to approximately $114.
Eligibility for Refunds and Claim Submission Process
The FTC outlined specific eligibility criteria for refunds. Affected Fortnite players who were charged for unwanted in-game items or experienced account lockouts after disputing charges between January 2017 and September 2022 qualify. Additionally, parents whose children made unauthorized purchases on their credit cards between January 2018 and November 2018 are also eligible.
A dedicated online portal allows impacted consumers to submit refund claims until January 10, 2025. Detailed information regarding the claim process and eligibility requirements is available on the FTC’s website. With approximately $173 million remaining in the refund pool, eligible individuals are encouraged to submit their claims promptly.
Epic Games’ Response and Commitment to Consumer Protection
In December 2022, when the settlement was announced, Epic Games acknowledged the agreement and expressed a commitment to improving consumer protection and enhancing player experience. The company emphasized its ongoing efforts to implement changes aligned with player and regulatory expectations, aiming to serve as a positive example within the gaming industry.
This substantial refund initiative underscores the FTC’s dedication to safeguarding consumers from deceptive online practices and holding companies accountable for unethical billing tactics. The ongoing distribution of refunds provides financial redress to affected Fortnite players and reinforces the importance of transparent and ethical monetization strategies within the gaming industry.
