Epic Games Fined $520 Million for Privacy and Consumer Rights Violations

04,01,25
Epic Games faces a historic fine for violating children's privacy and misleading in-game purchase practices.

Epic Games, the creators of the global sensation Fortnite, have been hit with a record-breaking $520 million fine by the Federal Trade Commission (FTC). The fine stems from allegations that Epic violated children's privacy laws and engaged in deceptive practices regarding in-game purchases.

The FTC found that Epic collected personal data from underage players without obtaining parental consent, a direct violation of the Children’s Online Privacy Protection Act (COPPA). Additionally, the company was accused of using "dark patterns" to trick users into making unintended purchases, such as accidentally buying in-game items or upgrading accounts.

The settlement includes $275 million for violating COPPA and $245 million to refund affected users. This case has sparked widespread discussion about the gaming industry's responsibility to protect younger audiences and implement ethical business practices.

Epic Games has responded by introducing stricter parental controls and refund mechanisms. However, the case serves as a stark reminder for gaming companies to prioritize transparency and consumer rights in their operations.

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