Epic Games fined record $520 million for privacy violation
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Epic Games, the developer of Fortnite will pay the record amount of 520 million, both in fines and refunds. The developer of Fornite has in fact settled with the Ftc (Federal Trade Commission) for the allegations of violation of the protection of the privacy of minors online and for inducing players to make unwanted purchases in Fortnite. In its complaint, the US Antitrust alleges that Epic has collected personal information from Fortnite players under the age of 13 without their knowledge and without parental consent. And for breaking online privacy protection laws for children by tricking them into buying in-game items. The US regulator had moved after an investigation into Epic’s privacy protection and other practices, which emerged during the trial of its lawsuit against Apple in 2021.
What does the agreement include?
Settlement includes a record $275 million fine to settle alleged violations of the Children’s Online Privacy Protection Rule and $245 million for a purchase setup that may have tricked players into acquiring in-game skins, cosmetics, and in-game items accidentally. Basically, the FTC alleges that Epic collected personal information from Fortnite players under the age of 13 without parental knowledge or consent. Among other things, according to the US authority Epic Games, enabling voice and text chat by default would have implemented an unfair practice that puts children and adolescents in risky contact with strangers.
The reaction of Epic Games
In the statement released, Epic Games defended itself by listing the changes it’s made to Fortnite – many of them in the last year – in response to consumer complaints and privacy concerns. The most recent is a feature called “Cabined Accounts,” announced on December 7. It should be remembered that Fortnite made over $9 billion during its first two years of existence.
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