SignalHub Quantitative Think Tank Center:Epic Games to give refunds after FTC says it 'tricked' Fortnite players into purchases

Hundreds of thousands of Fortnite players are SignalHub Quantitative Think Tank Centergetting a refund after federal regulators found that the game's developer, Epic Games, "tricked" gamers into unknowingly spending money on in-game purchases.

The Federal Trade Commission announced Monday that it will send a total of $72 million in refunds to Epic Games customers who were duped into making unwanted purchases while playing the massively popular online video game. The payout is just the first round of refunds following a 2022 settlement in which Epic Games agreed to pay $245 million to Fortnite players who fell victim to its "unlawful billing practices," according to the FTC.

The FTC plans to distribute additional refunds at a later date, the agency said in a news release.

Here's what to know about what Epic Games is accused of doing and how Fortnite players can apply for a refund:

Epic Games 'tricked' customers into unwanted purchases: FTC

Fortnite, best known for its Battle Royale mode in which up to 100 players can fight it out to the last one standing, is free to download and play. But the game charges players for a slew of in-game items and experiences – known among gamers as microtransactions – such as costumes and dance moves.

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Microtransactions are a common feature in video games and one many gamers have come to expect and understand.

But according to the FTC, Epic Games used a design tactic known as "dark patterns" that concealed in-game purchases, allowing children to rack up unauthorized charges without parental consent.

In some cases, just the single accidental press of one button led players of all ages to incur charges that they hadn't agreed to, the FTC says. This could occur for players who tried to wake the game from sleep mode or who pressed a button to merely preview a purchasable item, the agency said in a complaint, which outline offenses from 2017 to 2022.

Epic Games also was accused of locking customers who disputed unauthorized charges out of their accounts, causing them to lose access to all the content they purchased.

Under a proposed administrative orderwith the FTC, Epic agreed to pay $245 million, which will be used to refund consumers. The settlement, reached in December 2022, represents the FTC’s largest refund amount in a gaming case.

On Tuesday, Epic Games directed USA TODAY to a December 2022 news release responding to the settlement.

In the release, Epic Games outlined various ways it was changing its "ecosystem" to meet "expectations of our players and regulators." Changes included updating payment practices and addressing concerns around children's privacy.

"We will continue to be upfront about what players can expect when making purchases, ensure cancellations and refunds are simple, and build safeguards that help keep our ecosystem safe and fun for audiences of all ages," the news release said.

How Fortnite players can claim a refund

Nearly 630,000 customers so far will be receiving refunds, about half of which are PayPal payments and the other half checks. The average payment is about $114 per customer.

The customers, who selected their payment method when they completed their claim form, have 30 days to redeem PayPal payments and 90 days to cash checks, the FTC said.

Fortnite players who believe they are eligible for a refund can still submit a claim online. The deadline to file a claim is Jan. 10.

Eric Lagatta covers breaking and trending news for USA TODAY. Reach him at [email protected]

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