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RALEIGH, NORTH CAROLINA: Online video game Fortnite has been hit with a $520M fine for collecting children's data without the consent of their parents. It has been accused of tricking them into unwanted in-game purchases. The children were allegedly also exposed to suicide chat. Fortnite was released by Epic Games in 2017.
North Carolina company Epic Games will have to pay $275M for collecting data and privacy issues, and $245M for in-item purchases. The fine would settle allegations that the company took advantage of the children, according to the Federal Trade Commission (FTC). The company has also been accused of causing psychological trauma by exposing children to threats of bullying, harassment and suicide. They allegedly received disturbing messages on the game's live chat function. The company's CEO is Tim Sweeney.
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Why is CA suing Activision Blizzard? Gaming company slammed over 'horrifying' allegations
The FTC alleged that players of all ages were deceived into what is called "dark patterns" when users have to buy online credits. It said the operation was "counterintuitive, inconsistent, and confusing" button configuration which helps Epic earn hundreds of millions of dollars in unauthorized charges to consumers, according to NBC News.
Who is CEO of Epic Games Tim Sweeney?
A video game programmer and businessman, Tim Sweeney is also the creator of the game development platforms Unreal Engine. He attended the University of Maryland starting around 1989, studying mechanical engineering. His father, who worked for the Defense Mapping Agency, reportedly gave him an IBM Personal Computer/AT around this time. Sweeney then established Potomac Computer Systems, a consulting business, but it was shelved after it failed to work out. He later came up with the idea of creating games that could be sold. He used his fortune to buy large tracts of land in North Carolina for conservation.
Epic Games said of the FTC settlement on its website, "Epic has reached a settlement with the Federal Trade Commission (FTC). In it, Epic will pay $245 million USD to the FTC to resolve concerns related to past designs of the Fortnite item shop and refund systems in Fortnite, which the FTC will use to distribute to Epic customers at their discretion. Epic will also pay $275 million USD to the FTC to resolve concerns related to children’s privacy in Fortnite."
"No developer creates a game with the intention of ending up here. The video game industry is a place of fast-moving innovation, where player expectations are high and new ideas are paramount. 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. We accepted this agreement because we want Epic to be at the forefront of consumer protection and provide the best experience for our players," it added. "Over the past few years, we’ve been making changes to ensure our ecosystem meets the expectations of our players and regulators, which we hope will be a helpful guide for others in our industry."