Violating Privacy and Dark Pattern Rules Can be Very Expensive

The feds say that Epic Games, maker of the super popular game, Fortnite, has agreed to pay a fine of more than a half billion dollars to settle the charges.

While Fortnite is free, players can buy in-game items like dance moves and costumes. There are more than 400 million users worldwide.

The fine breaks down like this:

A record-breaking $275 million for violating COPPA, the child online protection law. This is the largest penalty for violating any FTC rule. EVER!

In addition, Epic gets to pay a $245 million refund to customers who were affected by Epic’s billing practices.

The COPPA violation is that they used personal information from game players under 13 without verifiable parental consent.

The FTC also claims that Epic’s decision to enable real-time voice and text chat by default for children and teens put them at risk of bullying, harassment and other forms of harm.

As early as 2017, Epic employees tried to get the company to change the default settings, citing concerns about the impact on kids. Despite this and reports that kids were being sexually harassed, the company did not change the default.

The dark patterns charge (dark patterns mean making it hard to change settings and options that the company doesn’t want you to change) comes from the fact they when they eventually did add an option to turn off voice and text chat, they made it hard to find.

The law in multiple states now makes it a criminal act to make it harder to opt out than opt in. This means that if the default is that you are opted in, you better make it real easy to opt out.

Also part of the settlement is a change to the voice and text communications option for kids and teens which will require a parent’s consent to enable.

The FTC also says that Fortnite used dark patterns to trick players into making unwanted purchases.

In light of having to write a check for a half billion dollars, Fortnite says that they are making changes to privacy settings and payment process.

Companies have two options – attempt to con consumers or comply with the law. The current administration appears not to take kindly to the former so businesses that have young customers should review their practices.

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Credit: Bleeping Computer

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