Epic Games, the creator of Fortnite, agreed to pay around $520 million over allegations that it violated children’s privacy laws and used deceptive game features that tricked customers into shelling out millions of dollars, the company said Federal Trade Commission on Monday.
The privacy breach settlement requires Epic to adopt robust default child and youth privacy settings that guarantee voice and text communications are disabled by default.
The deceptive gaming practice agreement will see Epic reimburse consumers $245 million, the largest reimbursement amount in a gaming case in FTC history.
In a statement, Epic confirmed the agreement.
“No developer makes a game with the intention of ending up here. The video game industry is a place of fast-paced innovation, where player expectations are high and new ideas are paramount,” the company said in the statement.
“Statutes written decades ago do not specify how gaming ecosystems should operate,” the statement added. “The laws have not changed, but their application has evolved and longstanding industry practices are no longer sufficient.”
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