Epic Games faces FTC fallout: How 'dark patterns' cost Fortnite $72 million in refunds

Epic Games, the creator of Fortnite, is under intense scrutiny for its use of dark patterns—deceptive design tactics that trick users into unintended actions. This led to a landmark settlement with the Federal Trade Commission (FTC), resulting in a record-breaking $245 million penalty, of which $72 million has already been refunded to affected players.

Dark patterns are manipulative user interface designs that pressure or confuse consumers. Epic Games reportedly used tactics like inconsistent button configurations, making it easy for Fortnite players to incur unwanted charges. Even basic actions like waking the game from sleep mode or previewing an item could lead to accidental purchases. These deceptive practices disproportionately impacted teenagers and children, according to the FTC.

FTC Chair Lina M. Khan highlighted the gravity of the situation: “Epic used privacy-invasive default settings and deceptive interfaces to trick Fortnite users. Protecting the public, especially children, from online privacy invasions and dark patterns is a top priority for the Commission.”

The FTC began refunding players this week, issuing over 629,000 payments via PayPal and checks. The average refund is $114, reflecting the scale of the financial impact on users. However, the FTC’s action against Epic Games goes beyond restitution; it’s part of a broader crackdown on dark patterns in digital spaces.

Dark patterns, coined in 2010 by designer Harry Brignull, have become a pervasive issue across the internet, enticing consumers to make purchases or share data they wouldn't normally agree to. Research shows that these manipulative techniques are incredibly effective, often doubling or tripling conversion rates without sparking significant user backlash.

As dark patterns proliferate, the FTC’s action against Epic Games serves as a cautionary tale for other companies employing deceptive tactics. With regulatory bodies taking a hard stance, the digital era may finally see stricter oversight of these manipulative practices.