After Being Busted By The FTC For Using “Dark Patterns” To Push Microtransactions, Epic Games Begins Handing Out $245 Million In Refunds
As a result of the developer previously being dinged by the US’ Federal Trade Commission for using deceptive practices to trick Fortnite players into making unwanted in-game purchases, Epic Games has begun doling out its previously agreed upon $245 million.
In 2022, the US government agency fined Epic Games a total of $520 million on the grounds that they had both violated child privacy laws – specifically the American Children’s Online Privacy Protection Rule (or COPPA) – and used “dark patterns and billing practices” to lead players into buying microtransactions.
This hefty penalty consisted of two separate payments – a fine in the amount of $275 million for their COPPA violation and a mass refund to players totaling $245 million.
And now, roughly two years later, said refunds are finally making their way into players’ hands.
Taking to her personal Twitter account on December 9th, current FTC chair Lina Khan announced, “The @FTC
previously ordered Epic Games to pay $245 million for tricking players into making unwanted purchases & letting kids rack up unauthorized charges. We are now sending the first round of refunds totaling more than $72 million to those harmed.”
The claims are reportedly open to the roughly 37 million players who suffered unauthorized purchases by any means from January 2017 to September 2022.
Parents of children who suffered unwanted purchases between January 2017 and November 2018 are also eligible, and those locked out of accounts after disputing payments with Epic Games. The deadline to file claims will be January 10th, 2025, with payments coming out around six months after a claim form is approved.
While the FTC is in the process of reaching out to the affected parties via email, eligible individuals can file their claim via an official FTC page set-up for the case.
But before players start celebrating their newfound fortunes, as with all class action lawsuits, it should be noted that the amount awarded depends on the total number of individuals who file a claim.
Given that there 37 million viable claimants, should each and every one of them file a claim, the resulting payments would total a meager $6.62.
At the time of this article’s writing, the FTC has reportedly already sent $72 million of the total refund pool out to 629,344 claimants.
If this money was handed out evenly, this would mean that each respective party received approximately $144 a piece. However, at current, it’s unknown just how the FTC is calculating their refund amounts.
Speaking to Newsweek, FTC spokesperson Juliana Gruenwald Henderson highlighted this was only the first round of payments, explaining “additional money will be distributed later. People can still submit a claim if they haven’t done so already through January 10.”
As aforementioned, in conjunction with the prior COPPA violation, Epic Games are required to pay out a total of $520 million in refunds. Given that Fortnite has made $40 billion as of December 2024, meaning Epic Games settled for about 1.3% of the game’s lifetime profit.
Notably, far from just monetary payments, Epic Games’ settlement requires Fortnite to change how its in-game purchases are presented, such as streamlining button functionality and providing more obvious confirmation that a purchase is about to occur, in order to avoid deceiving players.
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