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Epic Games, publisher and developer of Fornite will pay $520 Million in fines to the FTC for violating the Children's Online Privacy Protection Act.
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FTC had claimed that Epic paired teens and children "with strangers," exposed them to "dangerous and psychologically traumatizing issues," and did not provide adequate parental control.
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"Protecting the public, and especially children, from online privacy invasions and dark patterns is a top priority for the Commission, and these enforcement actions make clear to businesses that the FTC is cracking down on these unlawful practices," FTC chair Lina Khan said in a statement.
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Epic will pay two penalties, including a $245million fine against Fortnite's refund and in-game store systems and a $275 million penalty to address concerns about child privacy.
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The FTC's claim that Epic made deliberate choices to appeal to children was at the heart of the settlement.
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It cited "music, celebrity and brand partnerships," which included deals with Travis Scott and Ariana Grande and a large collection of Fortnite merchandise.
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The FTC stated that Epic failed to address COPPA violations despite being targeted at children.
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Epic's efforts to address harassment on-platform were called "weak-willed" by the FTC. Epic took two years to "finally [introduce] parental control to the game."