Security News > 2022 > December > FTC Fines Fortnite Maker Epic Games $275 Million for Violating Children's Privacy Law

Epic Games has reached a $520 million settlement with the U.S. Federal Trade Commission over allegations that the Fortnite creator violated online privacy laws for children and tricked users into making unintended purchases in the video game.

To that end, the company will pay a record $275 million monetary penalty for breaching the Children's Online Privacy Protection Act by collecting the personal information of Fortnite players under the age of 13 without seeking permission from their parents.

On top of that, the complaint also accused Epic Games of forcing parents to "Jump through unreasonable hoops" to get their children's personal data deleted and making it difficult to find the option to disable voice chat.

Epic Games can retain the data should it obtain permissions from parents or users who identify themselves as 13 or older through a neutral age gate.

The development comes weeks after Epic Games announced Cabined Accounts as a way to offer a "Safe and inclusive" experience for young users by disabling features like chat, personalized recommendations, and in-game purchases without a parent or guardian's consent.

"Protecting the public, and especially children and teens, from online privacy invasions is a top priority for the Commission, and this enforcement action makes clear to businesses that the FTC is cracking down on these unlawful practices."

News URL

https://thehackernews.com/2022/12/ftc-fines-fortnite-maker-epic-games-275.html