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Fortnite Epic Games creators must pay record fine | News about privacy


It will pay the price for violating children’s privacy laws and tricking users into making purchases they didn’t intend to make.

Fortnite creator Epic Games will pay $520 million to settle allegations that it illegally collected children’s personal information and tricked people into buying, the company and the US Federal Trade Commission Ky said.

The commission said on Monday it would pay a record $275 million fine for violating children’s privacy laws and would impose strong default privacy settings on young people. Epic Games will also pay $245 million to refund consumers who were tricked into making purchases they didn’t intend to make.

“Epic used privacy-intrusive default settings and a deceptive interface to trick Fortnite users, including teenagers and children,” committee chair Lina Khan said in a statement.

The commission made the announcement because it has a stronger role in controlling the gaming industry, including sue Microsoft to block its $69 billion bid to acquire Activision.

Epic said in a statement on Monday that it removed the pay-to-win and pay-to-progress mechanics when two players compete against each other and removed random item loot boxes in 2019. They also said they are making an explicit consent decision. /no option to save payment information.

It says players can seek cashback via credit card. “If a cardholder sees an unauthorized transaction on their statement, they can report the transaction to their bank to request that the transaction be reversed,” the company said in its statement.

To protect kids, Epic says it’s made features like parental controls more accessible and requires a PIN to allow parents to authorize purchases and limit daily spending for kids. under 13 years old.

The committee said Epic employees had expressed concern about the company’s default settings for kids, saying people should be asked to opt-in to voice chat. The commission said voice and text chat should be turned off by default.

Children’s privacy advocates are pleased with the settlement. “Children should also have their data privacy more respected through the enforcement of this federal children’s data privacy law,” said Jeff Chester of the Center for Digital Democracy.

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