Settlement With Epic Games Highlights Continued Focus By Regulators On Unfair Privacy Practices, Teens, And User Interface Design

On December 19, the Federal Trade Commission (FTC) reached two separate record-breaking settlements with Epic Games, Inc. ("Epic") over allegations, among others, that the Fortnite video game maker knowingly violated the Children's Online Privacy Protection Act (COPPA), engaged in unfair practices by publicly broadcasting players names and connecting players in real-time through on-by-default settings, and purposefully maintained dark patterns resulting in unfair billing practices under Section 5 of the FTC Act.

The agreements require Epic to pay a combined $520 million in civil penalties and consumer refunds, as well as establish a comprehensive privacy program that addresses the allegations in the FTC complaints. Each settlement amount, the $275 million in civil penalties and $245 million consumer refund, are the largest amounts obtained in each respective type of settlement by the FTC. These large amounts demonstrate the FTC's commitment to enforcing its rules,