Epic Games to Refund $72 Million to Fortnite Players

In a groundbreaking settlement with the Federal Trade Commission (FTC), Epic Games, the creator of the immensely popular Fortnite, is set to distribute $72 million in refunds to players who unintentionally made unwanted purchases. This decision comes after the FTC alleged that the gaming giant engaged in unlawful billing practices using deceptive design strategies, commonly referred to as dark patterns.

Background of the Settlement

The $72 million refund is part of a much larger settlement valued at $245 million, which was announced in December 2022. The FTC's investigation revealed that Epic Games used design tricks to mislead players, particularly targeting younger audiences. This settlement represents the largest amount the FTC has ever awarded in a gaming case, reflecting the agency's commitment to protecting consumers, especially minors, from manipulative online practices.

What Happened?

The FTC's allegations describe several ways in which Fortnite players—often children and teenagers—were tricked into making purchases without their consent. Among the unlawful practices noted are:

• Inconsistent Button Configurations: Players found themselves making purchases with the simple press of a confusing button, leading to unintended charges.
• Wake Mode Triggers: Transitioning Fortnite from sleep to active mode often spurred extra charges, surprising many players.
• Preview Purchase Issues: Just attempting to preview an item could incur charges, as players would accidentally hit adjacent buttons.

Epic Games also reportedly locked out players disputing these unauthorized charges from their accounts, which complicated the refund request process and meant they lost access to previously purchased items in the game.

The Refund Process

The FTC is in the process of sending out refund payments to approximately 629,000 affected customers. The initial round of refunds will be distributed this Monday, with further payments expected down the line. Here’s what to expect regarding the refund process:

• Payment Distribution: Payments will be made through PayPal and checks. Half of the payments will be processed via PayPal, while the other half will be sent as checks.
• Average Payment Amount: Each eligible player will receive around $114, based on the total refund pool.
• Claim Submission: Players who believe they are eligible for a refund still have the ability to file claims online until January 10. Claimants chose their preferred payment method when filing the claim form.

Payment Redemption Timing

• PayPal Payments: Recipients must redeem their PayPal payments within 30 days.
• Checks: Those receiving checks have 90 days to cash them.

What's Next for Epic Games?

As the FTC shifts its focus to protecting consumers, this case against Epic Games marks a significant milestone. The agency's chairperson, Lina M. Khan, emphasized the agency's dedication to combating deceptive practices and ensuring that children and all consumers are shielded from such tactics in the future.

How to File for a Refund

Fortnite players who may still qualify for a refund can submit claims through the official FTC website at ftc.gov/fortnite. The process is straightforward, ensuring those victimized by these practices can reclaim their funds quickly.

Conclusion

The episode with Epic Games and the subsequent FTC settlement serves as a critical reminder of the need for transparency and consumer protection in online gaming. Players, especially minors, must remain vigilant against manipulative design practices that could lead to unintended financial implications. For more details, individuals can visit the FTC website or stay tuned for updates regarding future disbursements of the refund.