FTC fines Fortnite maker Epic Games $520M over children’s privacy and item shop charges
TechCrunchDec 19, 2022
The US Federal Trade Commission (FTC) on Monday announced that Epic Games, creator of the popular game Fortnite, has agreed to pay a record $520M settlement over privacy violations related to minors.
Epic will pay a record $275M to settle FTC accusations of violations against the Children’s Online Privacy Protection Act. The FTC alleged Epic collected personal information from children younger than 13 who played Fortnite and made it difficult for children and their parents to get the data deleted.
Even before agreeing to this settlement, Epic had been taking steps to protect children playing its games — including creating new options related to purchases and replenishments of accounts. The company has also created "Cabined Accounts," which automatically disables features, including chat and purchasing, for underage players. When it comes to consumer protection, Epic’s intention is to be a leader.
Epic might be doing the right thing now, but for years it violated FTC statutes. This settlement shows the agency means business regarding protecting children from online privacy and questionable behavior. This should serve as a warning shot for other businesses that commit similar violations. The FTC should continue to crack down, and the Children’s Online Privacy Protection Act should be revised and enhanced.