FTC fines Epic Games $520M for violating child privacy laws

The Federal Trade Commission (FTC) announced today it has entered into an agreement with Epic Games for the latter to pay fines amounting to $520 million. According to the FTC, Epic incurred this penalty by violating the Children’s Online Privacy Protection Act (COPPA) within Fortnite. More specifically, it alleged that Epic used invasive default settings to trick young players into making unintentional purchases.

Of the fines, $275 million is a monetary penalty Epic must pay for breaking COPPA. It’s the largest penalty of its type that anybody has paid the FTC. Epic must also pay $245 million in refunds to consumers for “its dark patterns and billing practices” (the FTC’s words). This also sets a record, as it’s the largest refund ordered by the FTC.