Tech
‘Epic Games’ Fined $500 Million For Stealing Kids’ Data
(CTN News) – There have been allegations of Epic Games collecting children’s information as well as misleading billing for the popular video game Fornite, which was released in 2017.
There are also regulations stating that children younger than five should not be allowed to use the game’s voice chat options as a result of US regulators.
In two separate cases involving video game company Epic Games, the US Federal Trade Commission (FTC) announced on Monday that the company would pay $520 million in penalties and refunds.
This week, Epic Games announced that it had settled allegations that it illegally collected children’s personal information.
The allegations were that it used deceptive interfaces in its battle royale game and used deceptive billing practices in its mobile application.
Complaints that were filed
According to FTC Chair Lina Khan, the company used default settings in Fortnite that violated users’ privacy and deceptive interfaces that fooled their users, including teenagers and children.
As a result, Epic Games has agreed to pay a $275 million penalty. This is because it did not inform or obtain consent from the parents of Fortnite players under the age of 13 before collecting their personal information.
As a result of this violation of FTC regulations, this is one of the biggest fines ever issued by the FTC.
As well as privacy concerns, US regulators were concerned about the game’s billing practices, which led players to make purchases that they weren’t intended to make.
As a result, Epic Games has refunded $245 million to customers who have been victims of such practices, called ‘dark patterns,’ in the past.
A report released by the Federal Trade Commission said that Fortnite’s voice and text chat options must be turned off by default. This is in order to protect children from being exposed to potential harassment.
Commentary by Epic Games
In an attempt to address concerns about the past design of Fortnite’s item shop and refund systems, Epic Games has said that it is trying to resolve them.
According to Epic Games, the FTC will distribute the money to customers “at their discretion.” In their words, “Statutes written decades ago do not specify how gaming ecosystems should operate,” the company stated.
It was announced that Epic Games would implement an explicit yes/no choice for the user to save payments and that the company would implement features such as easy-to-access parental controls and a daily spending limit for children under the age of 13 as well.
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