The popular online video game Fortnite, developed by Epic Games, has found itself in the midst of a substantial financial settlement with the US Federal Trade Commission (FTC). The FTC, acting as a consumer watchdog, ordered Epic Games to refund over $72 million to more than 629,000 players who were deemed to have been unfairly charged for in-game purchases. This refund program stems from a 2022 ruling where the FTC determined that Fortnite’s design and payment systems facilitated deceptive practices, leading to unintended purchases by players, including children making purchases without parental consent. The refunds, which can reach up to $100 per player, aim to compensate those affected by these practices and are being distributed to eligible claimants.
The core issue at the heart of the FTC’s action revolves around Fortnite’s in-game purchase mechanisms. The FTC found that the game’s design, particularly its user interface and button configuration, made it too easy for players to accidentally make purchases. This included instances where players were charged for items they did not intend to buy, often during gameplay or while navigating menus. Furthermore, the FTC criticized Epic Games for allowing children to make purchases without requiring parental authorization, leading to unauthorized charges on parents’ credit cards. The combination of these factors resulted in a significant number of players being unfairly charged for in-game items they did not want or intend to purchase.
The FTC’s 2022 ruling against Epic Games highlighted two key problematic practices: “dark patterns” and unauthorized charges. “Dark patterns” refer to deceptive interface designs that manipulate users into taking actions they might not otherwise choose, such as making unintended purchases. In Fortnite’s case, this included confusing button layouts and confirmation screens that made it easy for players to accidentally buy items. The second issue, unauthorized charges, centered on children using their parents’ credit card information stored on the platform to make purchases without parental permission. This practice exploited vulnerabilities in the game’s payment system and violated consumer protection laws.
The settlement reached between the FTC and Epic Games mandates significant changes to Fortnite’s in-game purchase practices. Firstly, Epic Games is now required to obtain explicit consent from players before charging them for any in-game items. This means implementing clearer confirmation screens and ensuring players actively choose to make a purchase rather than accidentally clicking a button. Secondly, Epic Games is prohibited from locking player accounts when they dispute unauthorized charges. This practice, previously used by Epic, prevented players from accessing their accounts and in-game content while their disputes were being investigated, essentially punishing them for raising concerns about potentially fraudulent charges.
The FTC is actively distributing refunds to eligible players who filed claims before October 8, 2024, and is currently reviewing claims submitted after that date. The eligibility criteria for receiving a refund are based on specific scenarios: being charged for unwanted in-game items between January 2017 and September 2022; having a child make unauthorized charges on a credit card linked to the account between January 2017 and November 2018; or having an account locked after disputing charges with a credit card company between January 2017 and September 2022. Only individuals 18 years or older can file a claim directly. Minors who believe they are eligible must have a parent or guardian submit the claim on their behalf.
Players who believe they meet the eligibility criteria have until January 10, 2025, to file a claim with the FTC. A dedicated Fortnite Refunds webpage has been set up by the FTC to provide detailed information about the refund process and includes a link to the application form. This resource offers comprehensive guidance on how to navigate the claims process and provides answers to frequently asked questions. This initiative underscores the FTC’s commitment to protecting consumers from unfair and deceptive business practices, particularly in the rapidly evolving digital gaming landscape. The settlement with Epic Games serves as a precedent for other game developers and highlights the importance of transparent and consumer-friendly in-app purchase systems.
