The U.S. Federal Trade Commission (FTC) announced on Monday that it has distributed the first refunds to consumers who were misled into making unwanted purchases in Fortnite, a popular game created by Epic Games. The refunds, totaling over $72 million, are part of a settlement reached after the FTC fined Epic $245 million in March 2023. This penalty stemmed from allegations that the game’s design employed “counterintuitive, inconsistent, and confusing button configurations,” leading players to make unintended purchases with a single click.
Epic Games’ deceptive techniques are part of a broader practice known as “dark patterns.” These design strategies manipulate users into taking actions they did not intend, often for financial gain. The FTC has recently increased its scrutiny of companies using such tactics, targeting major entities like Neo Bank Dave and Amazon for exploiting consumers. Dark patterns have been particularly concerning in subscription services and digital marketplaces, where users may find it difficult to cancel subscriptions or avoid unwanted charges.
In the case of Fortnite, the FTC found that Epic Games’ confusing interface caused accidental charges in multiple scenarios. For example, players could incur charges simply by waking the game from sleep mode or previewing items in the game’s store. According to the FTC’s findings, these design flaws disproportionately affected children, who often made unauthorized purchases without parental consent.
Under the settlement terms, Epic Games has agreed to cease using dark patterns and must obtain explicit, affirmative consent from users before processing digital purchases. Additionally, Epic is prohibited from locking accounts for customers who dispute charges for digital goods and services. These changes aim to prevent further harm and establish more explicit boundaries for digital transactions.
The $72 million being refunded this week represents the initial compensation phase for affected customers, with additional payments planned for the future. The FTC issues 629,344 payments on Monday, split between PayPal transfers and physical checks. Recipients choose their preferred payment method when filing their claims. Customers receiving PayPal payments must redeem them within 30 days, while those receiving checks have 90 days to cash them.
The average refund amount is approximately $114 per claimant. Consumers who still need to file a claim can still do so through an online form. This opportunity allows more individuals impacted by Epic Games’ practices to seek redress.
The FTC’s action against Epic Games underscores the growing focus on holding companies accountable for manipulative digital practices. The Commission aims to create a safer and more transparent digital marketplace by addressing dark patterns and protecting consumers from deceptive tactics.