Epic Games to Pay $520 Million for Using Deceptive Patterns on Children

[AleksandarK]

Fortnite maker, Epic Games, has on Monday reached a settlement in court in an investigation by the US Federal Trade Commission (FTC), to pay a total of 520 million US Dollars in fines. This fine is because Epic deployed shady tactics of manipulating children into purchasing Fortnite V-bucks, skins, etc., without proper consent forms and purchase order confirmations. Even with millions of complaints from parents, Epic decided to proceed with its tactics and used dark patterns that deceived the original intent. Thus, the FTC has made a case that this violates the Children's Online Privacy Protection Act (COPPA) rule, and Epic Games will have to pay the fine.

The fine is consists of two separate causes. The $275 million monetary penalty for violating the COPPA Rule—the largest penalty ever obtained for violating an FTC rule, and the $245 million to refund consumers for its dark patterns and billing practices. The refund fine is FTC's most considerable refund amount in a gaming case and its most significant administrative order in history. Epic said, "Over the past few years, we've been making changes to ensure our ecosystem meets the expectations of our players and regulators, which we hope will be a helpful guide for others in our industry. " The official statement is far longer, and you can read about it here.



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[erek]

I suspect Epic will be passing this $520 Million burden onto the consumer.

 

[Nihillim]

That's a drop in a bucket.

 

[KrazyT]

"shady tactics"
What an interesting name for new IP
What did they do exactly ?

 

[The King]

"shady tactics"
What an interesting name for new IP
What did they do exactly ?

This should explain it.

Deceptive Patterns (aka Dark Patterns) - spreading awareness since 2010

The original website about deceptive patterns (also known as “dark patterns”) - tricks used in websites and apps that make you do things that you didn't mean to, like buying or signing up for something.

www.deceptive.design

 

[erek]

That's a drop in a bucket.

Do people know Epic Games is owned by Tencent these days? Just curious

 

[DBGT]

Do people know Epic Games is owned by Tencent these days? Just curious

Not true, Tim Sweeney owns 51% or so.

 

[delshay]

No wonder this years discount coupon is worse than previous years.

 

[Dirt Chip]

No more free games than?
Bummers

 

[erek]

Not true, Tim Sweeney owns 51% or so.

you can't say that 48% isn't a very large controlling stake though, they're listed on the Hong Kong Market through Tencent only

 

[user556]

Mr Sweeney now should be fined personally for not coming clean on intent.

 

[the54thvoid]

you can't say that 48% isn't a very large controlling stake though, they're listed on the Hong Kong Market through Tencent only

I think by definition, that 51% is the controlling stake. Tencent may be the 2nd largest shareholder but they don't control it. Probably why Sweeney kept his shares above 50%.

Anyway, way before Tencent became the player they are, companies were already using these tactics.

 

[Luminescent]

Epic didn't do the necessary "contributions" like Google and Apple and they now pay the price.

 

[Kapone33]

Epic didn't do the necessary "contributions" like Google and Apple and they now pay the price.

Or is it that Fortnite went from a 3D Minecraft to a propaganda based on popular culture modern combination of Just Cause Multi Player and Minecraft.

 

[mak1skav]

Do people know Epic Games is owned by Tencent these days? Just curious

Probably this was the main reason they got fined someone would guess. If they were owned by EA, Ubisoft or Activision it would be business as usual without any "shady tactics" only filled with pride and accomplishment lol.

 

[Kapone33]

Probably this was the main reason they got fined someone would guess. If they were owned by EA, Ubisoft or Activision it would be business as usual without any "shady tactics" only filled with pride and accomplishment lol.

A settlement usually means that the prosecuting party has overwhelming evidence to support their case. It's not like Fortnite can't pay to have it go away. It is interesting who the case was Championed by too.

 

[TumbleGeorge]

Epic didn't do the necessary "contributions" like Google and Apple and they now pay the price.

What do you mean? That they did not pay a corrupt "peace tax" to the officials in the state institutions?

 

[64K]

It's amazing how much misunderstanding about Controlling Interest of Epic is around the net. Tencent doesn't have any power over Epic. They don't do anything without Sweeney's approval. They are an investor. Tim Sweeney controls Epic. If you have any issue with Epic then Tim Sweeney is to blame. There is nothing going on in Epic that Sweeney doesn't know about and condone.

 

[Pumper]

And how many billions did they make using said patterns? The fine sounds like a minor business expense.

 

[qubit]

Oh dear, the world's most caring, sharing company got nailed for exploitatively manipulating the vulnerable. Terrible decision.

 

[Chaitanya]

Funny how Google(Youtube kids) and Netflix have gotten away scott free for serving kids with adult content.

 

[Bomby569]

the fine is totally worth it, again this is bussiness expenses for these companies

 

[windwhirl]

And how many billions did they make using said patterns? The fine sounds like a minor business expense.

Fines are never meant to bankrupt companies. It would be idiotic.

 

[Bomby569]

Fines are never meant to bankrupt companies. It would be idiotic.

but it should hurt, it should change the behaviour, if it doesn't it's just a tax completely unrelated to the crime being committed.

There is one country (can't remember exactly now where) that the driving fines are proportional to your income.

 

[RadeonProVega]

They blame epic games, instead of the parents that needed to take responsibility for what their children is doing?
"deployed shady tactics of manipulating children into purchasing Fortnite V-bucks, skins, etc., without proper consent forms and purchase order confirmations. Even with millions of complaints from parents, Epic decided to proceed with its tactics and used dark patterns that deceived the original intent.

LMAO ok. "Used Dark Patterns"