Epic Games, the company behind the popular game Fortnite, is facing significant financial repercussions due to its controversial billing practices. Following a settlement with the Federal Trade Commission (FTC), the company has been ordered to pay a staggering $245 million in refunds to customers who made unintended purchases, marking the largest refund in a gaming case to date.
Refund Details for Affected Customers
As part of the settlement announced in December 2022, the FTC is in the process of distributing over 629,000 refund payments, with the first round scheduled for Monday. Approximately $72 million of the total settlement amount will be disbursed to affected Epic Games customers. The refunds will be issued through two primary methods: half via PayPal and the other half through checks.
How Much Will Each Customer Receive?
The average refund amount is estimated to be around $114. Customers eligible for refunds had the opportunity to select their preferred payment method when submitting their claims. Those who opted for PayPal payments will have 30 days to withdraw their funds, while check recipients will have a 90-day window to cash their checks.
Allegations Against Epic Games
The FTC’s investigation revealed that Epic Games employed various deceptive tactics, commonly referred to as “dark patterns,” to manipulate users into making unwanted purchases. One notable example includes a confusing button arrangement that inadvertently led players to accrue charges with a single click. Additionally, transitioning the game from sleep mode frequently resulted in unintended purchases, and pressing adjacent buttons while previewing items often led to accidental charges.
FTC Chair’s Statement
FTC Chair Lina M. Khan emphasized the importance of protecting consumers, particularly vulnerable groups like children and teenagers, from online privacy violations and manipulative practices. She stated, “As our complaints note, Epic used privacy-invasive default settings and deceptive interfaces that tricked Fortnite users… These enforcement actions make clear to businesses that the FTC is cracking down on these unlawful practices.”
This settlement serves as a critical reminder of the responsibilities that game developers and digital platforms hold in ensuring fair and transparent interactions with their users.
