U.S. consumers who felt misled into making unwanted purchases while playing Fortnite are beginning to receive refund checks, according to an announcement from the Federal Trade Commission (FTC) this week. This follows Epic Games’ settlement agreement, which totals $520 million, addressing complaints related to children’s privacy and deceptive payment practices.
The FTC had asserted that Epic employed misleading online design strategies that led players, particularly children, to make unintended purchases with the simple click of a button. Instances included being charged when trying to wake the game or accidentally pressing buttons while exploring in-game items. Furthermore, the FTC claimed that Epic prevented some users who challenged these charges from accessing their purchased content.
As part of the settlement, Epic was ordered to pay a $275 million penalty for mishandling minors’ private information and an additional $245 million earmarked for customer refunds. The first wave of these refunds consists of over 629,000 payments being sent to eligible individuals who submitted claims, amounting to more than $72 million. Reports indicate that the average refund is about $114, with half of the payments being processed via PayPal and the remaining as checks.
Consumers still have an opportunity to apply for refunds. Those eligible include Fortnite players faced with unauthorized charges or account lockouts after disputing charges from January 2017 to September 2022, in addition to parents whose children made unapproved purchases using their credit cards between January and November 2018. The FTC has set a deadline of January 10, 2025, for claims submissions, and details are available on the agency’s website.
This case exemplifies the commitment to consumer protection, particularly for younger gamers, and reinforces the responsibility of companies to ensure transparency in their payment processes. The proactive measures being taken reflect a positive step forward in safeguarding players and promoting ethical practices within the gaming industry.