Fortnite has made it to the news on and off as the competitive video game hooked children and adults alike. On December 19, the Federal Trade Commission (FTC) announced that Fortnite maker Epic Games will have to pay $520 million to settle charges about children’s privacy concerning the game. As the FTC fines Epic Games, it hopes to set a precedent in the video game industry for developers to set better controls.
In a press release, the FTC accused the game-maker of violating the Children’s Online Privacy Protection Act (COPPA) and employing a system designed to dupe players. Part of the fines are also meant to refund customers for employing unethical practices.
FTC Fines Epic Games
FTC alleges that Epic Games intentionally violated COPP rules as evidenced by their surveys, product lines for children, and other company communications, which reveal that the company collected data about children without obtaining the requisite permissions.
As the FTC fines Epic Games, it also noted that parents who requested that their children’s data be removed/deleted were forced to navigate unnecessary difficulties. The company was also reprimanded for not following through on some requests.
In the press release, the FTC wrote, “Epic’s settings enable live on-by-default text and voice communications for users.”
The proposed federal court order also advises the Fortnite-maker against enabling voice and text communication for teens and children, unless parents provide affirmative consent through a privacy setting.
Privacy issues appear to be a major concern for legal guardians and lawmakers.
The complaints allege that Epic Games used dark patterns to trick users into making purchases, charged account holders without proper authorization, and sometimes blocked access to purchased content.
The FTC also called on Epic to establish a comprehensive privacy program that tackles the problems identified in the FTC’s complaint.
Epic Games Responds to FTC
The Fortnite-maker agreed to pay the fine and mentioned that no developer wishes to end up like this.
On accusations concerning past designs of the Fortnite item shop, the company stated that they moved forward in the video games industry by constantly innovating.
“Statutes written decades ago don’t specify how gaming ecosystems should operate. The laws have not changed, but their application has evolved and long-standing industry practices are no longer enough,” Epic wrote in a statement. “We accepted this agreement because we want Epic to be at the forefront of consumer protection and provide the best experience for our players.”
Epic also assured stakeholders that they are making the necessary efforts to ensure that both consumers and regulators are happy with their products.
The company also mentioned that they do not allow players to pay for something they do not intend to purchase. Since May 2018, Fortnite also has a refund token system and undo-purchase system in place. They’ve now added another feature to tackle privacy issues.
The company revealed, “We’ve updated our payment flows with a hold-to-purchase mechanic that re-confirms a player’s intent to buy, as an additional safeguard to prevent unintended purchases alongside instant purchase cancellations and self-service refunds.”
Players under 13 or younger, depending on the country’s digital laws, will be able to play Fortnite while awaiting parental consent, but unable to make purchases or use the chat features.
Privacy laws Concerning Video games
A 2022 report from the Oxford Internet Institute on gamers 18 and older found that time spent playing video games had “little to no” effect on well-being.
The gaming experience often encourages children to unknowingly give access to personal information for additional in-game benefits.
Regulators have now started monitoring online creators and video game makers as these avenues are frequently used to market digital products to young users.
The Federal Trade Commission views individual content creators, in addition to platforms like YouTube, as being subject to COPPA liability if an ad network collects personal information from viewers of that channel, such as through a review or subscription.
COPPA generally recommends having proper parental consent in place for children under the age of 13. As of 2020, the FTC had brought around 30 cases against companies violating COPPA regulations.
The Organisation for Economic Co-operation and Development (OECD) Recommendation on Children in the Digital Environment was adopted in 2021, and the accompanying Digital Service Provider Guidelines also focus on privacy issues. They require service providers to “regularly take steps necessary to prevent children from accessing services and content that should not be accessible to them, and that could be detrimental to their health and well-being or undermine any of their rights.”
As the world moves towards implementing privacy by design into systems, it is only proper that entertainment providers do the same.
