Epic Games, Creator of Fortnite, to Pay $520 Million Over Children’s Privacy

The Federal Trade Commission on Monday announced a $520 million settlement with Epic Games, the developer of popular video games like Fortnite and Fall Guys, over charges that the company illegally collected information from children and, separately, tricked millions of players into making unintentional purchases.

The deal involves record penalty amounts in two separate cases.

Epic agreed to pay $275 million to settle regulators’ accusations that it violated a federal law, the Children’s Online Privacy Protection Act, by collecting personal information from children under 13 who played Fortnite without obtaining verifiable consent from a parent. The company also made parents “jump through hoops” to have their children’s data deleted and sometimes failed to honor parents’ deletion requests, the agency said in a legal complaint filed on Monday.

The amount dwarfs the $170 million penalty — the previous record for child privacy violations — that Google agreed to pay in 2019 over accusations that it illegally harvested data from children on YouTube and used it to target them with ads.

As part of the proposed settlement, the agency will require Epic to adopt high-privacy default settings for children and teens. That means the company must turn off settings that had enabled live text and voice chats for younger users.

Article source: https://www.nytimes.com/2022/12/19/business/ftc-epic-games-settlement.html