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Fortnite’s $245 million refund process begins

The Federal Trade Commission (FTC) is currently contacting 37 million people about a major compensation lawsuit for the popular video game Fortnite. This is due to allegations that the game’s developer, Epic Games, engaged in deceptive practices that led to inadvertent in-game purchases and violated user privacy.

Last year, Epic Games accepted a whopping $245 million in refunds, following the FTC’s charges. Fortnite, which has a player base of over 400 million, primarily generates revenue through in-game transactions despite being free. The FTC’s contention is that the game’s deceptive interfaces led to inadvertent purchases and that the game’s default settings interfered with players’ privacy.

The settlement agreement totaled $520 million. Notably, $275 million of that amount serves as a fine for the way Fortnite collects data from its users, especially those under the age of 13, without parental consent — the largest fine the FTC has ever levied .

The rest of the funds will be used for refunds.

While this deal is US-focused, Epic Games has previously indicated its willingness to reimburse UK parents for unauthorized in-game purchases made by their children. However, it remains unclear whether a similar arrangement will be instituted in the UK.

According to the US deal, eligible refunds will include in-game purchases such as outfits, loot boxes and the game’s virtual currency, V-Bucks. Those affected have until January 2024 to submit their claims. This covers charges for unwanted in-game items from January 2017 to September 2022 and for unauthorized child transactions between January 2017 and November 2018.

Epic Games, after the initial disclosure of the agreement, emphasized the changes they have introduced, such as parental controls and improved privacy settings for young players, affirming their commitment to consumer protection.

This article is sourced from and written by AI.

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