The decision is a consequence of the settlement that Epic Games signed with the Federal Trade Commission (FTC) at the end of 2022. The American office accused the creators of Fortnite of illegally persuading players to make “unintentional purchases” – But the bone of contention in the whole case was also the privacy of players.
Fortnite. $245 million will go to players (or their parents). 37 million people can get money
American regulators have started notifying by e-mail over 37 million people who have been qualified to receive compensation for making accidental purchases in the Fortnite game. As part of the settlement Epic Games will pay a fine of USD 520 million, and almost half of the amount will go to the injured players. However, people interested in compensation will have to report to the FTC by January 17 next year.
As a reminder, the US office decided that purchasing virtual currency used in the game and virtual items to help in gameplay was simply too easy. Additionally, the publisher allegedly used illegal practices to encourage players to buy. As a result, at least some of them made transactions by mistake or unknowingly. Worse yet, in many cases, credit cards were charged to children who purchased Fortnite add-ons without their parents’ knowledge or consent. The FTC also found that Epic Games collected personal data from all players, including children under the age of 13. Doing so without parental consent is a violation of FTC regulations.
Therefore, the settlement was divided into two parts. Almost half of the total amount, i.e. $245 million, will go to people who made unknowing purchases in Fortnite. These are players who made an accidental purchase between January 2017 and September 2022 and people whose children made in-game payments between January 2017 and November 2018 without their knowledge. Additionally, those whose Fortnite account was blocked after they filed a complaint with the bank that issued the credit card (used for unwanted transactions) are eligible for compensation. In total, there are over 37 million people.
The remaining part of the amount, i.e. USD 275 million, is the penalty agreed between the parties for collecting personal data of the youngest players without the knowledge and consent of their parents. This is the highest penalty ever imposed for violating US Federal Trade Commission regulations – Last December, Epic Games also implemented additional security measures to protect players from making accidental purchases. In 2022, the FTC also issued refunds totaling over $392 million.
Source: Gazeta
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