Do you want to know why the Federal Trade Commission (FTC) sued Fortnite for $520 million? Fortnite is a famous battle royale video game developed by the gaming company Epic Games and released in 2017. FTC has Sued for $520 Million, accusing of violating the Children’s Online Privacy Protection Act (COPPA). We will discuss why the Federal Trade Commission (FTC) sued Fortnite for $520 million.
Why did the Federal Trade Commission (FTC) sue Fortnite for $520 million?
The FTC sued Fortnite for $520 million in violation of the Children’s Online Privacy Protection Act (COPPA). The law was passed in 1998 to protect children from the misuse of their personal information by websites and online services.
On December 11, 2022, FTC sued Fortnite for $520 million and was accused of not complying with Children’s Online Privacy Protection Act (COPPA). The case was filed in the US District Court for the Eastern District of North Carolina.
Over one million parents complained against Epic Games for making unauthorized charges from their credit cards to purchase in-game items.
According to COPPA, companies must provide clear notice to parents about their data collection practices and obtain parental consent before allowing children under the age of 13 to make in-game purchases. But Fortnite was found guilty of not having such policies and procedures. The FTC sued Fortnite with these facts.
Epic Games has agreed to pay the amount in two terms paying $275 million to the US government to resolve claims against the company and another $245 million refunding consumers impacted by Fortnite’s unauthorized charges.
Related:
Epic Games Store May Bring Back One Of Its Biggest Deals Soon
This is the highest penalty ever imposed by the FTC for a COPPA violation. And serves as an essential reminder to companies that they must take the privacy of their youngest users seriously.
Epic Games has released an announcement in their Official blog saying, “No developer creates a game with the intention of ending up here. The video game industry is a place of fast-moving innovation, where player expectations are high and new ideas are paramount. Statutes written decades ago don’t specify how gaming ecosystems should operate. The laws have not changed, but their application has evolved and long-standing industry practices are no longer enough. We accepted this agreement because we want Epic to be at the forefront of consumer protection and provide the best experience for our players. ”
Because of these privacy issues and the potential damage to children, the FTC has sued Fortnite for $520 million. Also, this is a tremendous amount of money, showing that the FTC is taking this case seriously. The outcome of this case could have significant implications for other companies that collect data from children. This case s an important reminder to companies to comply with consumer protection laws, such as COPPA.