Fortnite game maker will pay $520M to settle FTC child privacy violation claims

Epic Games, maker of the popular video game Fortnite, will pay $520 million to settle allegations from federal regulators that it tricked children into making in-game purchases and violated privacy laws.

The video game company will pay $275 million for violating a federal children's privacy law and will spend another $245 million in refunding customers for its alleged "unlawful billing practices," the Federal Trade Commission said Monday. 

The $275 million marks the largest fine the agency has ever obtained for the violation of an FTC rule, while the $245 million represents a record refund for a gaming case, the federal agency said.

"Use of dark patterns" to make illegal charges

The FTC sued Epic Games last year, alleging that the North Carolina company collected personal information about teenage players without parental consent. In a separate legal action, the FTC had also accused Epic Games of tapping so-called dark patterns, or deceptive designs, to trick young players into making in-game purchases. 

For instance, players could be charged for a purchase by pressing one button in an attempt to wake the game up from sleep mode, the FTC said. 

"Epic put children and teens at risk through its lax privacy practices and cost consumers millions in illegal charges through its use of dark patterns," Samuel Levine, the FTC's Bureau of Consumer Protection director, said in the statement. 

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In a statement Monday, Epic said it accepted the settlement "because we want Epic to be at the forefront of consumer protection and provide the best experience for our players."

It added, "No developer creates a game with the intention of ending up here."