For example, the FTC is also litigating an unfairness claim with Kochava, a data broker that, according to the FTC’s complaint, sold the precise location data of individuals from which intimate details about their lives could be discerned. This decision comes in the wake of other FTC claims that highlight how companies’ data practices can allegedly be unfair to consumers. Wilson, the sole Republican commissioner, released a separate statement in support of the FTC’s unfairness allegations pointing to Epic’s knowledge of its users’ young ages and actual harms caused by Fortnite’s voice and live text features. Here the FTC alleged that broadcasting players’ display names while putting children and teens in direct, real-time contact with others through on-by-default lines of voice and text communication during gameplay was unfair under Section 5. The FTC is continuing to test out its unfairness authority over alleged privacy violations.These large amounts demonstrate the FTC’s commitment to enforcing its rules, including the FTC’s COPPA rule, and Section 5 of the FTC Act with respect to children and teens and dark patterns.įollowing are key takeaways from the settlements: 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. 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. (“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. On December 19, the Federal Trade Commission (FTC) reached two separate record-breaking settlements with Epic Games, Inc.

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