Fortnite maker to pay $520M for privacy, e-commerce abuses

The maker of the popular Fortnite video game will pay $520 million in penalties and refunds to settle complaints revolving around children's privacy and its payment methods that tricked players into making unintended purchases, U.S. federal regulators said Monday.

The Federal Trade Commission reached the settlements to resolve two cases against Epic Games Inc., which has parlayed Fortnite's success in the past five years to become a video game powerhouse.

The $520 million covered in the settlement consists of $245 million in customer refunds and a $275 million fine for collecting personal information on Fortnite players under the age of 13 without informing their parents or getting their consent. It’s the biggest penalty ever imposed for breaking an FTC rule.

“Epic used privacy-invasive default settings and deceptive interfaces that tricked Fortnite users, including teenagers and children,” FTC Chair Lina Khan said in a statement.