NEW YORK — U.S. consumers who were misled into making unwanted purchases from Epic Games, the creator of Fortnite, are now beginning to receive their refund checks, as announced by the Federal Trade Commission (FTC) this week.
In a settlement reached in 2022, Epic Games agreed to pay a total of $520 million in response to complaints regarding children’s privacy and payment practices in the popular Fortnite game. The FTC’s allegations suggested that the company employed misleading online design strategies that led players, including minors, to make accidental purchases with merely a button press.
For instance, players could find themselves charged when trying to wake the game from sleep mode or mistakenly pressing a button while attempting to view an item, according to the agency. Additionally, the FTC charged that Epic sometimes blocked users from accessing their purchased content if they contested the charges.
The settlement encompassed a $275 million penalty associated with the unlawful collection of personal information from players younger than 13, along with $245 million earmarked for customer reimbursements. Currently, the initial distribution of refunds is taking place.
As of Monday, the FTC has announced that it is issuing over 629,000 payments to eligible individuals who have filed claims. Approximately half of these refunds will be delivered through PayPal and expected to be cashed within 30 days, while the remainder will be sent as checks, which should be processed within a 90-day period.
The average refund amount is around $114, as reported by the FTC. This initial round of payouts totals over $72 million, leaving an estimated $173 million still to be distributed.
Consumers who were affected can still apply for refunds online. Eligibility extends to Fortnite players who were billed for in-game currency for items they did not intend to purchase or those whose accounts were locked after they reported unauthorized charges to their credit card companies between January 2017 and September 2022. Additionally, refunds are available to parents whose children made unauthorized charges on their credit cards from January 2018 to November 2018.
Individuals can find information on how to apply for a refund online. The deadline to file a claim is set for January 10, 2025.
When the settlement was made public in December 2022, Epic Games expressed its commitment to consumer protection, stating that it wanted to be a leader in providing an optimal experience for its players. The company, based in Cary, North Carolina, indicated it was already implementing changes aimed at aligning its practices with the expectations of consumers and regulators, hoping to set a positive example for others in the gaming industry.