Epic Games, renowned for creating the immensely popular Fortnite battle royale game, is embarking on a substantial reimbursement initiative, set to return $245 million to players. This move is part of a groundbreaking settlement with the U.S. Federal Trade Commission (FTC), specifically addressing deceptive practices related to in-game purchases.
The settlement, arising from allegations of misleading tactics employed by Epic Games to drive in-game transactions, marks a significant victory for the FTC in its efforts to regulate online gaming and safeguard consumer interests. Last year, the FTC took decisive action against the Fortnite maker, citing “dark patterns” and manipulative online practices that allegedly led players to make unintentional purchases. The $245 million settlement aims to compensate affected customers who fell prey to these practices.
Fortnite, a cultural phenomenon with up to 100 players engaging in virtual island battles, has been both a source of entertainment and controversy. While players have reaped substantial financial rewards in tournaments, the game has also been criticized for fostering obsessive play and contributing to stress.
The FTC has established a dedicated page for Fortnite refunds and has begun reaching out to millions of players via email with claim numbers. Eligible parties for claims include gamers and parents affected by unauthorized purchases between January 2017 and September 2022. Parents are specifically eligible if their child made unrecognized charges to their credit cards between January 2017 and November 2018. Additionally, those who faced account lockouts after disputing wrongful charges can also file claims.
To apply for a refund, potential claimants can visit the provided link and will need either a claim number or their Epic Account ID. The deadline for filing a claim is January 17, 2024. With the estimated 37 million customers affected and the $245 million settlement allocated for customer refunds, a basic calculation suggests each affected Epic Games customer could receive approximately $6.62.
It’s important to note that not every Fortnite player is eligible; the FTC mandates that claimants be at least 18 years old or have claims filed by a parent or guardian. The exact amount each claimant receives will depend on the total number of claims. While the timing of payment issuance is currently unclear, an FTC spokesperson previously indicated to Newsweek that payments typically commence about six months after claim forms are released.
In addition to the financial settlement, the agreement mandates changes in Epic Games’ in-game purchasing processes, focusing on preventing accidental purchases and ensuring fairness in billing practices. Notably, Epic Games faced a dual accusation alongside the “dark patterns” settlement for violating the Children’s Online Privacy Protection Act. The total settlement of $520 million encompasses a $275 million penalty for privacy violations and $245 million for addressing “dark patterns.”
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