Epic Games, the developer and publisher of gaming behemoth Fortnite, has been slapped with a record fine in the US for alleged children’s privacy violations.

The US’s Federal Trade Commission (FTC) on Monday said that Epic had agreed to pay a penalty of $520 million to settle allegations that it illegally collected children’s personal information and tricked people into making purchases.

The total sum will be made up of $275 million for violating children’s privacy law, with $245 million to refund customers who had made purchases they did not intend to make. Epic will also adopt stronger default privacy settings for young people, such as easier-to-access parental controls and a PIN feature for parents, along with allowing them to set a daily spending limit.

The game has historically been criticised by many in the games industry for so-called ‘dark patterns’ which encourage spending, and for cultivating a culture which shames kids for not having the latest digital outfits or skins.

Commenting on the penalty, FTC chair Lina M. Khan, said: "As our complaints note, Epic used privacy-invasive default settings and deceptive interfaces that tricked Fortnite users, including teenagers and children.

“Protecting the public, and especially children, from online privacy invasions and dark patterns is a top priority for the Commission, and these enforcement actions make clear to businesses that the FTC is cracking down on these unlawful practices.”

In a statement published on its website, Epic said that “no developer creates a game with the intention of ending up here,” and that “we accepted this agreement because we want Epic to be at the forefront of consumer protection and provide the best experience for our players.”

The company added that players could seek refunds via credit cards, encouraging cardholders to report unauthorised transactions to their bank.

Fortnite generated $5.8 billion revenue in 2021 for Epic Games.

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