FTC Imposes $245 Million Fine on Epic Games for Violating Child-Related Laws

On Monday, the U.S. Federal Trade Commission (FTC) authorized a fine of $245 million against Epic Games, the developers of the popular battle royale game Fortnite, for violating child-related laws and tricking players into unwanted purchases. After the original $275 million fine was agreed upon last December, the remaining amount was approved this week in order to provide refunds and reparations to the wronged players.

The FTC had evidence that Epic Games were using non-obvious solutions to encourage children to make payments without parental supervision. This can range from allowing players to use in-game currency to purchase unwanted items such as cosmetic items, llamas, or passes. Additionally, the fine also covers refunds to parents who had their children make unauthorized credit card purchases from Epic Games Store between 2017 and 2018.

Apart from financial compensation, the FTC also noted that Epic Games has promised to create “clearly communicated parental control tools'' in order to prevent minors from making unauthorized purchases in the future. This includes improving the visibility of the parental control suite, making it easier for parents to monitor the time their kids spend playing on the platform, and putting in place a system that will protect players against unauthorized transactions.

In its official statement released to the public, FTC Commissioner Rohit Chopra noted that this fine is meant to be a reminder to other tech companies that child-related laws are a top priority. Chopra stated that "the FTC will continue to take strong enforcement actions to put an end to business practices that target younger audiences."

In conclusion, the recent fine imposed on Epic Games is a reminder that while the gaming industry is constantly evolving, the rules of fair gaming are still the same. The FTC is determined to protect underage players from making unauthorized purchases and ensure that parents are aware of the tools available to protect their children from making in-game purchases. With this punishment, companies will be more aware of their responsibility when it comes to catering to the youngest generation of gamers.