FORTNITE CREATOR EPIC GAMES GOT SUED IN US, FOR VIOLATING KID'S LAW. $520 MILLION FINE
On December 17, 2021, the US Federal Trade Commission (FTC) announced that it had reached a settlement with Epic Games, the developer of the popular video game Fortnite, over allegations that the company had violated federal law by collecting personal information from children without their parent's consent and by engaging in deceptive e-commerce practices.
According to the FTC, Epic Games had violated the Children's Online Privacy Protection Act (COPPA) by allowing children under the age of 13 to create accounts on its platform without obtaining parental consent. The company also allegedly used deceptive tactics to encourage children to make in-game purchases, such as by offering "loot boxes" that contained randomized virtual items and by using misleading language to describe the terms of its in-game currency.
Under the terms of the settlement, Epic Games will pay a civil penalty of $5.2 million and will be required to implement a comprehensive data privacy program to protect the personal information of its users. The company will also be required to obtain parental consent before collecting personal information from children and to clearly disclose the terms and conditions of in-game purchases.
The FTC's action against Epic Games highlights the importance of protecting children's privacy online and the need for companies to be transparent about their data collection and e-commerce practices. It also serves as a reminder for parents to be vigilant about the types of apps and games their children are using and to ensure that they understand the privacy implications of those apps and games.
According to the FTC, Epic Games had violated the Children's Online Privacy Protection Act (COPPA) by allowing children under the age of 13 to create accounts on its platform without obtaining parental consent. The company also allegedly used deceptive tactics to encourage children to make in-game purchases, such as by offering "loot boxes" that contained randomized virtual items and by using misleading language to describe the terms of its in-game currency.
Under the terms of the settlement, Epic Games will pay a civil penalty of $5.2 million and will be required to implement a comprehensive data privacy program to protect the personal information of its users. The company will also be required to obtain parental consent before collecting personal information from children and to clearly disclose the terms and conditions of in-game purchases.
The FTC's action against Epic Games highlights the importance of protecting children's privacy online and the need for companies to be transparent about their data collection and e-commerce practices. It also serves as a reminder for parents to be vigilant about the types of apps and games their children are using and to ensure that they understand the privacy implications of those apps and games.
