Epic Games Faces Fallout for Controversial Design Practices
The Federal Trade Commission (FTC) announced on Monday that it has begun distributing the first round of refunds totaling over $72 million to Fortnite players who were misled into making unintended purchases. This marks a significant step in a settlement agreement first unveiled in December 2022, where Epic Games was fined $245 million for employing deceptive user interface practices, often referred to as “dark patterns.”
Understanding the Controversy: Dark Patterns in Digital Design
Dark patterns are design techniques used to manipulate users into actions they may not intend, such as subscribing to services or making purchases. The FTC has increasingly cracked down on such practices, highlighting how they exploit consumer trust.
Epic Games’ case centered on Fortnite’s confusing button configurations, which resulted in unauthorized charges. Players, often children, were unknowingly billed when the game was woken from sleep mode or when they previewed in-game items. These tactics led to numerous complaints from parents and players alike.
The FTC labeled Epic’s navigation system “counterintuitive, inconsistent, and confusing,” noting that it caused many users to make unintended transactions without parental consent.
A Settlement Aimed at Reforming Practices
In the settlement finalized in March 2023, Epic Games was not only required to pay $245 million in refunds but also to implement major changes to its digital purchasing processes. The company agreed to:
- Obtain clear, affirmative consent before processing any purchases.
- Eliminate the use of deceptive design patterns.
- Ensure that customer accounts cannot be locked for disputing charges related to digital goods and services.
These measures are intended to create a more transparent and user-friendly purchasing experience, particularly for younger players who are more vulnerable to manipulation.
First Wave of Refunds: Over 600,000 Payments
On Monday, the FTC began issuing the first round of refunds to affected consumers. A total of 629,344 payments were made, split evenly between PayPal and checks, based on consumer preferences provided during the claims process.
The average refund amount is approximately $114, with individual payments reflecting the scale of unauthorized charges incurred. The FTC advised recipients to redeem PayPal payments within 30 days and cash checks within 90 days to ensure timely processing.
What’s Next?
This is just the first phase of the refund distribution. Additional payments will be sent in the coming months to eligible claimants. Consumers who have not yet submitted a claim can still do so via the FTC’s online form.
Epic Games is not the only company facing scrutiny for using dark patterns. The FTC has taken action against other businesses, including Amazon and the neobank Dave, for similar manipulative practices. These efforts reflect the Commission’s commitment to protecting consumers in an increasingly digital marketplace.
A Lesson for the Gaming Industry
The Epic Games case underscores the need for ethical design in digital spaces. As gaming companies cater to millions of players, many of whom are minors, transparency and fairness must take precedence over profit-driven manipulation.
This settlement serves as a cautionary tale for the broader industry, signaling that deceptive practices will face serious consequences. For now, affected Fortnite players are seeing justice as the refunds begin to roll out.
