FTC Doling Out $126M in Refunds to Fortnite Players

The Federal Trade Commission is sending out the latest round of refunds to consumers it says were "tricked" into purchases they didn't want from Fortnite maker Epic Games, as well as to eligible players who haven't been compensated yet still have time to apply. The FTC said it was distributing nearly 970,000 refunds totaling more than $126 million to consumers on Wednesday and Thursday. That follows the regulator's first round of payments amounting to more than $72 million, which went out in December, per the AP.

• The refunds are part of a $520 million settlement that Epic agreed to pay in 2022 to address complaints revolving around children's privacy and payment methods on its popular Fortnite video game. At the time, the FTC had alleged that the gaming giant used deceptive online design tactics to trick Fortnite players, including children, into making unintended purchases "based on the press of a single button."
• Consumers could be charged while doing something as simple as attempting to wake the game from "sleep" mode, for example, or by pressing a nearby button when trying to preview an item, the agency said.

• Beyond a $275 million fine related to collecting personal info for players under the age of 13, the settlement, which was finalized in 2023, included $245 million in customer refunds. Between December's payments and the refunds sent out this week, about $198 million of that has been sent out—leaving roughly $47 million still to be distributed.
• The latest refunds are being doled out to consumers who filed a valid claim before Feb. 14—meaning any claims filed after that date are still under review, per the FTC. Those eligible include Fortnite players who were charged in-game currency for items they didn't want or saw their account locked after complaining to a credit card company about wrongful charges between January 2017 and September 2022, as well as parents whose kids made charges on their credit cards without their knowledge from January 2018 through November 2018.
• The agency also says it's reopening the claims process. Eligible consumers who haven't been compensated yet now have until July 9 to file a claim. If accepted, the refunds come in the form of checks or PayPal payments. Find out more at the FTC here.