Penalty Amount
$275,000,000
Epic Games, maker of Fortnite, violated children's privacy laws by collecting data from under-13 users without parental consent and used deceptive designs to trick users into unintended purchases. The FTC secured a $275 million civil penalty and $245 million in consumer refunds, with requirements to enhance privacy defaults, delete improperly collected data, implement a privacy program, and prohibit dark patterns and account locking for charge disputes.
Epic must pay a $275 million penalty to the U.S. Treasury, provide $245 million in refunds to consumers, delete personal information collected from children without parental consent, implement a comprehensive privacy program with independent audits, change default privacy settings to turn off voice and text communications for children and teens unless affirmatively consented, and is prohibited from using dark patterns to induce purchases or blocking account access for disputed charges.
In-house legal teams should review all customer-facing agreements, particularly Terms of Service (ToS), End User License Agreements (EULA), and in-app purchase/billing terms for users of any online service or game. Key clauses to scrutinize include: (1) consent mechanisms for data collection, especially for users identified or likely to be under 13, ensuring they mandate verifiable parental consent; (2) billing and purchase clauses to identify and eliminate 'dark patterns'—deceptive UI/UX designs that trick users into unintended charges; (3) account management terms that prohibit locking or restricting accounts for disputing charges; (4) data handling and retention clauses to ensure improper children's data is deleted and collection is limited; and (5) privacy setting clauses to enforce strong defaults for minors (e.g., disabling voice/text chat). Changes will likely involve rewriting consent flows, redesigning purchase interfaces for clarity, implementing robust refund processes, and establishing enforceable privacy-by-default configurations for younger users.
Entity
Epic Games, Inc.
Also known as: Epic Games
Industry
GamingOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2022/12/fortnite-video-game-maker-epic-games-pay-more-half-billion-dollars-over-ftc-allegations
2223087EpicGamesComplaint
https://www.ftc.gov/system/files/ftc_gov/pdf/2223087EpicGamesComplaint.pdf
2223087EpicGamesSettlement
https://www.ftc.gov/system/files/ftc_gov/pdf/2223087EpicGamesSettlement.pdf
1923203EpicGamesComplaint
https://www.ftc.gov/system/files/ftc_gov/pdf/1923203EpicGamesComplaint.pdf
1923203EpicGamesACCO
https://www.ftc.gov/system/files/ftc_gov/pdf/1923203EpicGamesACCO.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Epic Games, Inc., creator of the popular video game Fortnite"
"Epic will pay a $275 million penalty"
"violated the Children’s Online Privacy Protection Act (COPPA)"
"FTC Act’s prohibition against unfair practices"
"violated the COPPA Rule"
"collecting personal information from children under 13 who played Fortnite, a child-directed online service, without notifying their parents or obtaining their parents’ verifiable consent."
The FTC rescinded its 2021 Policy Statement on Breaches by Health Apps and Other Connected Devices, which had purported to apply the Health Breach Notification Rule to health apps and connected devices that collect consumer health information. The rescission follows the Commission's 2024 update to the Health Breach Notification Rule, which already covers health apps and connected devices like fitness trackers, and implements an executive order directing agencies to eliminate obsolete guidance documents. No company was charged or penalized; this is a deregulatory action.
$12.0M
The FTC alleged that payment processor Humboldt Merchant Services knowingly processed payments for more than 1,000 shell merchant entities serving as fronts for fraudulent companies engaged in unauthorized billing scams, despite red flags including chargeback rates nearly 10 times higher than card-brand thresholds. Under the proposed stipulated order filed in the U.S. District Court for the Eastern District of Michigan, Humboldt will pay $12 million for consumer redress and is permanently banned from processing payments for merchants with a heightened risk of potential fraud.
$4.8M
The FTC charged Canada-based payment processor Nuvei Corporation and its subsidiaries with knowingly processing payments for fraudulent merchants, including more than $30 million in payments for the Reimage tech support scam from 2017 to 2023, as well as merchants making false earnings claims and impersonating government tax authorities. Under the stipulated order filed in the U.S. District Court for the District of Arizona, Nuvei will pay $4.85 million for consumer redress, is banned from serving tech support telemarketers, and must implement robust merchant screening and chargeback monitoring practices. Note: this is a payments-fraud facilitation action under the FTC Act and Telemarketing Sales Rule, not a data privacy violation.
The FTC announced a seven-day extension of the public comment period on its proposed enforcement policy statement regarding personalized pricing, pushing the deadline from Sept. 18, 2026 to Sept. 25, 2026. Personalized pricing refers to using personal data to set prices based on what the company believes an individual consumer is willing to spend. This is a procedural announcement about draft agency guidance, not an enforcement action against any company, and no entity was named, no violation found, and no penalty imposed.
Colorado Attorney General Phil Weiser joined the FTC and 22 state attorneys general in filing a lawsuit against Amazon for manipulating the auctions used to set advertising prices, replacing actual auction results with higher prices since 2019 and overcharging nearly 1.2 million U.S. advertising customers. The FTC estimates total improper surcharges from 2018 to 2026 exceed $20 billion, with costs ultimately passed to shoppers through higher prices. The states seek a permanent injunction and monetary relief; no penalty has been imposed yet as this is a newly filed complaint.
$930K
The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.