37M Families to Receive Compensation from Epic Games

Parents, whose children without their knowledge purchased virtual goods in the popular Fortnite video game, will soon be able to get compensation. The Federal Trade Commission (FTC) of the USA has begun to notify more than 37 million people by e-mail about opportunities to obtain compensation under a legal agreement with the creator of Fortnite, Epic Games.

The FTC announced in December 2022 that Epic Games agreed to pay $520 million in fines and compensation to resolve complaints related to violations of children’s confidentiality and misleading payment methods that resulted in unwanted purchases. Of this amount, $245 million is intended to be returned to customers in order to cover part of the costs of unwanted in-game currency, known as V-Bucks, or virtual objects such as costumes or figures in the form of cartoon violet lamps.

Consumers can apply for compensation until January 17 of next year. In addition, Epic Games has agreed to pay a fine of $275 million for allegedly collecting personal information about Fortnite players under 13 years of age without informing their parents or obtaining their consent. This represents the largest fine ever imposed for a violation of the FTC rules.

According to the FTC, the following categories of people are entitled to obtain compensation:

  • Users who have had in-game currency written off for objects they did not want to buy between January 2017 and September 2022.
  • Parents whose children made purchases on their credit cards without their knowledge between January 2017 and November 2018.
  • Users whose accounts were blocked after they complained to their credit card companies about unauthorized charges.

After settling the case in December of last year, Epic Games stated that it had implemented additional security measures to prevent unwanted purchases. In an updated statement, the company directed all interested parties to visit the FTC’s webpage to receive additional information.

/Reports, release notes, official announcements.