Epic to Pay $245 Million in Refunds and $275 Million Penalty Over Fortnite Dark Patterns
The Federal Trade Commission announced on Monday that Epic Games, the maker of Fortnite, will pay a $245 million refund fund for consumers harmed by in-game purchase manipulation, along with a record $275 million penalty for collecting personal data from children without parental consent. Combined, the $520 million settlement is the largest ever obtained by the FTC in a video game-related enforcement action. The refunds will go to players who were charged for unwanted in-game items such as outfits, pickaxes, or emotes. The FTC's complaint detailed how Fortnite's interface used “counterintuitive, inconsistent, and confusing” button designs that led players to incur charges with a single press of a button, often while they were simply trying to dismiss a prompt or preview an item. For example, players could be charged while the screen was loading, or after pressing an adjacent button that appeared to be unrelated to purchasing. The FTC also alleged that Epic locked users out of their accounts after they disputed unauthorized credit card charges with their banks, which was a deliberate tactic to prevent chargebacks and pressure players into returning to the damaging purchase flow. Epic has not admitted wrongdoing, but it has agreed to pay the penalties and to alter its business practices going forward, signaling a major shift in how free-to-play games must treat consumer consent and transparency.
FTC Orders Epic Games to Fix Fortnite's Privacy Settings and Voice Chat After COPPA Violations
Separately, the FTC charged Epic with violating the Children's Online Privacy Protection Act, commonly known as COPPA, because Fortnite collected personal information from users under age 13 without notifying parents or obtaining verifiable parental consent. The complaint noted that Fortnite made voice and text chat enabled by default for all players, meaning children could be exposed to strangers' messages and voice interactions without their parents' knowledge or approval. Epic also retained this sensitive data longer than necessary. As part of the settlement, Epic is required to obtain explicit parental consent for children's data collection and to delete existing personal information collected from minors. Furthermore, the FTC's order mandates that Epic change its default privacy settings for all users, not just children. Voice and text chats will no longer be set to "on" by default; instead, players must proactively opt in to such communications. This marks a dramatic departure from the previous system, where the easiest and most immediate path after launching Fortnite led directly to open chat with strangers. Epic must also implement systems for users to request deletion of their data, and the company is barred from using dark patterns to undermine privacy choices. These changes are intended not only to protect children but also to give every player clear, informed control over their personal information and communication features.
How Fortnite's 'Instant Purchase' and UI Tricks Led to Millions in Unauthorized Charges
The heart of the FTC's consumer-protection case was a set of user-interface design choices that the agency called "dark patterns." In Fortnite, pressing a button to preview an item could immediately trigger a purchase if the user's account already had in-game currency (V-Bucks) or if a payment method was on file. The game used an "assist" system that would auto-confirm transactions without requiring a password, PIN, or even a final confirmation screen. In some cases, simply holding down a button for too long while trying to loot a chest or open a door caused the game to charge the player's credit card for a battle pass or a dance emote. The FTC found that Epic trained users to expect a certain button behavior in other parts of the game, such as pressing with no confirmation to perform ordinary actions, and then reused those same button presses for expensive in-game purchases. This was especially problematic because Fortnite attracted millions of children, who are less able to understand the consequences of such interface choices. Even after receiving thousands of complaints about unauthorized charges, Epic reportedly made it difficult for users to get refunds, and it temporarily blocked customers who filed chargebacks from their banks, which the FTC deemed unfair and deceptive. The $245 million refund pool will be used to compensate affected players, and Epic must also stop using any darkened, hidden, or redundant interface elements designed to obscure purchase transactions.
What the Epic-FTC Settlement Means for Fortnite Players: New Consent Rules and In-Game Purchasing Reforms
Beyond fines, the settlement forces Epic to make permanent structural changes to Fortnite and all its games. First, the company must create a system that gives users immediate, in-game confirmation before any purchase, including a clear display of the item, its price, and a genuinely separate "cancel" button that is not located near the confirm button. Second, Epic must honor refund requests automatically for a specified period of time. For example, if a parent discovers their child bought V-Bucks or a skin without permission, Epic must process the refund promptly and not punish the account holder by locking them out. Third, the FTC order explicitly prohibits Epic from using "dark patterns" — defined as interface tricks that subvert or impair consumer autonomy, decision-making, or choice. This means no more misleading button layouts, no last-second purchase triggers, and no hiding payment information behind multiple layers that a player may not realize are linked to real money. Fourth, in terms of privacy, voice chat and text chat will be off by default for users who are under the age of 16 in the U.S., and even for adults, the chat features will require an explicit opt-in rather than being automatically enabled. Epic must also maintain a comprehensive data-management program that limits how long it stores personal information and how it shares data with third parties. These requirements are enforceable by the FTC, meaning Epic could face additional civil penalties if it violates the order. For Fortnite's player base — many of whom are minors — this settlement represents a landmark step toward safer gaming environments and fairer in-game commerce.
