Tuesday, May 13, 2025
THE ESPORTS ADVOCATE
No Result
View All Result
  • Money
  • People
  • Brands
  • Events & Tournaments
  • Entertainment
THE ESPORTS ADVOCATE

Epic Games Agrees to Pay FTC $520M to Settle Fortnite-Related COPPA Violations

Company admits no wrongdoing in settling claims.

James FudgebyJames Fudge
December 20, 2022
in Brands, Legal, Money
Reading Time: 2 mins read
Credit: Epic Games

Credit: Epic Games

The Federal Trade Commission (FTC) announced Monday that Epic Games has agreed to pay $520M USD to settle two civil complaints filed by the agency that claimed it violated online privacy protection laws related to children and encouraged or tricked players into making purchases in its ultra-popular game Fortnite. The settlement was first reported by the Wall Street Journal.

One of those claims filed in court alleged that Epic violated the Children’s Online Privacy Protection Act (COPPA) when it collected the personal information of players under the age of 13 but did not inform their parents or guardians.

The FTC also alleged that Epic enabled communications within the game such as real-time audio and text as a default for children and teens, Further, the agency claimed that Epic connected children with strangers–and in some cases–may have subjected them to abusive language and harassment from older users. Finally, the FTC alleged that Epic “intentionally” hid cancel and refund features, making it more difficult for consumers to get their money back on purchases.

An estimated $275M of that $520M will be used to satisfy the COPPA violations, while $245M will be used to pay for consumer refunds.

The FTC says that this is the largest civil settlement in its history. Epic admits no wrongdoing in making this settlement highlight that it simply wants to move beyond these issues.

FTC Chair Lina Khan said in a statement related to the settlement that this action is part of the agency’s commitment to protect online privacy and deceptive practices, especially as it pertains to children.  

Tags: COPPAEpic GamesFinesFortniteFTCSettlements
TweetShareShareShareShareShareSend
Previous Post

Joseph Ziegler Leaves Riot Games to Join Bungie

Next Post

Layoffs Hit Evil Geniuses

James Fudge

James Fudge

With a career spanning over two decades in the esports and gaming journalism landscape, James Fudge stands as a seasoned veteran and a pivotal figure in the evolution of esports media. His journey began in 1997 at Game-Wire / Avault, where he curated gaming and community news, laying the groundwork for his expertise in the field. In his more recent roles, James cemented his status as an authority in the esports business sphere as Senior Editor Esports at Sports Business Journal and The Esports Observer between 2018 and 2021.

The Esports Advocate

The Esports Advocate, your premier destination for in-depth and authoritative coverage of the esports business and finance landscape created to empower esports stakeholders with the knowledge and information needed to do business in the world of esports successfully.

Follow Us

  • About TEA
  • Terms of Service
  • Privacy Statement
  • Subscribe to our Newsletter
  • Our Mission Statement
  • Contact Us

© 2023 - 2024 The Esports Advocate. All rights reserved.

No Result
View All Result
  • Home
  • Money
  • People
  • Brands
  • Entertainment
  • About TEA

© 2023 - 2024 The Esports Advocate. All rights reserved.