The U.S. Federal Trade Commission made a significant announcement on Monday. It is now sending the first batch of payments to consumers who were tricked by Fortnite maker Epic Games into making unwanted purchases. The total amount of these refunds amounts to over $72 million. This settlement, which was first announced in December 2022 and finalized in March 2023, imposed a fine of $245 million on the game due to its "counterintuitive, inconsistent, and confusing button configuration." This configuration led consumers to make unintended purchases by mistakenly clicking the wrong button.
Focus on "Dark Patterns" by the FTC
In recent months, the use of such tricks, commonly referred to as "dark patterns," has been a key area of concern for the FTC. The Commission has released findings regarding the use of these deceptive techniques in subscription apps. It has also targeted companies that have exploited consumers through the use of dark patterns, including neobank Dave and Amazon, among others.Epic Games' Case and Confusing Navigation
In the case of Epic Games, the FTC discovered that confusing navigation was the cause of customers accidentally making purchases. For example, when players woke the game from a sleep mode, they could be charged even while the game was still loading. Additionally, they were charged when pressing a button to preview an item. These tactics led to many Fortnite players, mainly children, incurring unauthorized charges without any parental involvement. The FTC emphasized the seriousness of this issue.Epic Games' Settlement Requirements
As part of its settlement with the FTC, Epic Games was obligated to stop using these digital design tricks. It also had to obtain affirmative consent for digital purchases. Furthermore, Epic Games is prohibited from locking the accounts of customers who dispute charges for digital goods and services purchased. This settlement aims to protect consumers from such unfair practices.Refunds and Payment Distribution
The $72 million in refunds being sent to the harmed customers is the first round of payments from the settlement. Further payments are planned to be distributed at a later date. On Monday, 629,344 payments are being made, with half through PayPal and half through checks. Consumers had the option to select their preferred payment method when they completed their claim form. Affected customers are required to redeem their PayPal payment within 30 days and cash checks within 90 days.Consumer Claims and Average Payment
Consumers still have the opportunity to submit a claim via an online form if they have not already done so. The average payment is around $114. This indicates the significant financial impact on consumers who were deceived by Epic Games. The FTC's actions aim to provide some relief to these affected customers and hold Epic Games accountable for its actions.