FTC begins sending refunds in Epic Games settlement

The Federal Trade Commission (FTC) has begun sending over $72 million in refunds to consumers as part of a December 2022 settlement with Epic games.

The settlement resolved the FTC’s allegations the Epic Games tricked consumers into making unwanted purchases, the regulator said on Monday (Dec 9) press release.

The FTC sent 629,344 total payments Monday and will distribute more at a later dateaccording to the release. The average payment is about $114.

The first distribution amount in this case, it’s the seventh largest the FTC has ever sent, according to the regulator’s interactive refund data dashboards.

The FTC alleged that Epic Games, the maker of the video game Fortnite, tricked players into making unwanted purchases by using design tactics called “dark patterns.”“ let kids attack unauthorized charges without parental involvement, and blocked some users who disputed unauthorized charges from accessing content they purchasedaccording to the release.

At the announcement of the settlement in December 2022, FTC Chair Lina M. Khan said in a press release: “As our complaints note, Epic used privacy-invasive default settings and misleading interfaces that tricked Fortnite users, including teenagers and children. Protection of the public, and especially children, from invasions of privacy and dark patterns is a top priority for the commission, and these enforcement actions make it clear to companies that the FTC is cracking down on these illegal practices.”

Epic Games said then in one declaration on its website that the video game industry is experiencing rapid innovation, that players’ expectations are high and that decades-old statutes do not specify how today’s gaming ecosystems should operate.

“The laws have not changed, but their application has evolved and long-standing industry practices are no longer enough,” the company wrote in the statement on December 19, 2022. “We agreed to this agreement because we want Epic to be at the forefront of consumer protection and provide the best experience for our players.”

IN the first round of payments sent Monday, half was sent in the form of PayPal payments and half was sent as checks, per the release.

“Consumers chose their payment method when they completed their claim form“, the release states.