‘Fortnite’ maker Epic settles child privacy case, agrees to make refunds
| ‘Fortnite’ maker Epic settles child privacy case, agrees to make refunds | |
|---|---|
| Short Title | ‘Fortnite’ maker Epic settles child privacy case, agrees to make refunds |
| Location | United States of America |
| Date | December 2022 |
| Solove Harm | Insecurity, Secondary Use, Decisional Interference |
| Information | |
| Threat Actors | Fornite |
| Individuals | |
| Affected | Children |
| High Risk Groups | Minors |
| Tangible Harms | Loss of Trust, Financial Cost |
The developer of "Fortnite," agrees to pay a record $520 million to settle FTC allegations of breaching child privacy laws (COPPA) through unauthorized data collection and deceptive in-game design.
Description
The Fortnite case revolves around Epic Games, the creator of the immensely popular video game "Fortnite." In a landmark settlement with the Federal Trade Commission (FTC), Epic Games agreed to pay a staggering $520 million to address allegations of misconduct. These allegations encompass two critical aspects: First, Epic Games was accused of violating the Children's Online Privacy Protection Act (COPPA). The FTC contended that the company had collected personal information from players under the age of 13 without obtaining the requisite parental consent, contravening regulations aimed at safeguarding children's online privacy. Second, Epic Games faced accusations of employing deceptive design techniques known as "dark patterns." These tactics allegedly manipulated players, including minors, into making unintended and often unwanted in-game purchases.
As part of the settlement, Epic Games will pay a substantial $275 million penalty for its COPPA violation and provide $245 million in refunds to players who were allegedly misled into making purchases. This settlement sets a remarkable precedent, representing the most substantial penalty ever imposed for an FTC rule violation and the largest refund amount in a gaming-related case handled by the FTC. Beyond the financial repercussions, the settlement mandates significant changes to Fortnite's practices. These changes include the implementation of stronger privacy settings for minors, the deletion of personal information collected from children under 13, and the establishment of a comprehensive plan to address future privacy concerns. This case highlights the mounting bipartisan concerns regarding technology companies' potential to harm children and exploit their data.