Epic Games forced to refund hundreds of thousands of players for unauthorized charges

In a groundbreaking decision that sends shockwaves through the gaming industry, Epic Games, the developer behind the wildly popular online game Fortnite, has been ordered to pay more than $72 million to U.S. players who were allegedly “tricked” into making unwanted in-game purchases.

FTC unveils massive refund program

The Federal Trade Commission (FTC) announced on Monday, December 9, that it will begin distributing payments to 629,344 players who were victims of what the agency describes as “unlawful billing practices” between January 2017 and September 2022.

What went wrong?

According to the FTC, Fortnite’s game design deliberately created a minefield of potential accidental purchases. The agency alleged that the game’s “counterintuitive, inconsistent, and confusing button configuration” led players of all ages to incur unintended charges. Players could be charged unexpectedly, such as while attempting to wake the game from sleep mode, during loading screens, or by accidentally pressing adjacent buttons while trying to preview an item.

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Settlement terms and player protections

As part of the settlement, Epic Games has been mandated to implement significant changes to its billing practices:

• The company must now obtain explicit consent before charging users.
• Epic is prohibited from locking players out of their accounts for disputing unauthorized charges.

Who qualifies for a refund?

Eligible players include those who:

• Were charged for in-game items they didn’t want between January 2017 and September 2022.
• Had children make unauthorized credit card charges between January 2017 and September 2018.
• Had their accounts locked after disputing wrongful charges.

Claim details and deadlines

Players have until January 10, 2025, to file a claim. The average payment is expected to be around $114 per customer, though the exact amount will depend on the number of claims filed.

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How to claim your refund

Eligible U.S. players can submit their claims through the FTC’s designated link. Claimants will have the option to receive their refund via check or PayPal. Check recipients must cash their refunds within 90 days, while PayPal payments must be accepted within 30 days.

A warning to game developers

This settlement serves as a stark reminder to game developers about the importance of transparent billing practices and protecting consumers, especially younger players, from inadvertent purchases.

“The FTC alleged that Fortnite’s counterintuitive, inconsistent, and confusing button configuration led players of all ages to incur unwanted charges based on the press of a single button,” the agency stated in its official documentation.

As the gaming industry continues to evolve, this landmark case may well become a watershed moment in protecting consumer rights in digital entertainment.