FTC distributes  million to Fortnite customers who were tricked into making unwanted purchases

FTC distributes $72 million to Fortnite customers who were tricked into making unwanted purchases

The U.S. Federal Trade Commission said Monday it is sending the first round of payments to consumers who were tricked into making unwanted purchases by Fortnite maker Epic Games. The refund totals over $72 million. The settlement, first announced in December 2022 and finalized in March 2023, fined the game $245 million for its “counter-intuitive, inconsistent and confusing button configuration” that led consumers to make unwanted purchases by they clicked on the wrong button.

The use of such tricks, also known as “dark patterns,” has been a focus of the FTC in recent months. The Commission published findings on the use of the technique to defraud subscription apps and has targeted companies that have exploited consumers using dark patterns, including neobank Dave and Amazon, among others.

In the case of Epic Games, the FTC found that confusing navigation would lead customers to make purchases by mistake. For example, when players woke the game from sleep mode, they could charge while the game was still loading. They were also charged when a button was pressed to preview an item. The tactic resulted in many Fortnite players, mostly children, “making tortious charges without parental involvement,” the FTC said.

As part of its settlement with the FTC, Epic Games was required to stop using these digital design tricks and obtain affirmative consent for digital purchases. It also prevents Epic Games from suspending the accounts of customers who dispute charges for purchased digital goods and services.

The $72 million in refunds now being sent to injured customers are the first round of payments under the settlement. Further payments are planned for a later date. On Monday, 629,344 payments were made, half through PayPal and half through checks. (Consumers selected how they wanted to be paid when they filled out their application form.) Affected customers should clear their PayPal payment within 30 days and cash checks within 90 days.

The average payment is around $114. Consumers can still file a claim using an online form if they have not already done so.

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