Epic Games has reached a settlement with the FTC that will see the Fortnite developer paying out over $500M.
A previous complaint from the Federal Trade Commission aimed at Fortnite developer Epic Games has now led to the company reaching a settlement that eclipses half a billion dollars. While Epic Games has been under fire for a number of various reasons over the years, this situation with the FTC involving player privacy has been one of the most severe.
In total, Epic will now have to pay $520M as a result of this battle with the FTC. This amount of money is comprised of two separate charges, the first of which is for $275M and is associated with the aforementioned privacy concerns, specifically in regard to children. By proxy of Fortnite, Epic was found to have collected personal information that belonged to children under the age of 13 without consent from their parents or guardians.
The second amount, which sits at $245M, is then tied to problems with Fortnite's in-game shop and the way in which it previously functioned. Due to confusing prompts within Fortnite and charges that were made against the willingness of some players, the FTC complained that the game's shop led to unwanted purchases that couldn't be undone. As a result, this $245M will be used to provide refunds to some Fortnite players.
"No developer creates a game with the intention of ending up here," Epic said in a response on its website today."The video game industry is a place of fast-moving innovation, where player expectations are high and new ideas are paramount. Statutes written decades ago don't specify how gaming ecosystems should operate. The laws have not changed, but their application has evolved and long-standing industry practices are no longer enough.
0commentsAre you shocked to see how much money Epic is having to pay as a result of this back-and-forth with the FTC? Let me know either down in the comments or hit me up on Twitter at @MooreMan12.
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