The FTC Is Forcing Fortnite Creator to Pay More Than $72 Million in Refunds
Jul 03, 2025
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If you get hit with an eight-figure fine, you know you’ve done something wrong. Epic Games, the publisher of Fortnite, recently got in big trouble with the federal government and must issue a refund to each affected customer. What did the company do, and could you partake in the settlement? Here’s everything you need to know about the situation.
What Is the Fortnite Refund Ruling?
In December 2022, the Federal Trade Commission (FTC) ordered Epic Games to pay $245 million in refunds because it tricked players into making purchases. Allegedly, the developers used design tactics with dark patterns to let people spend money willy-nilly. Therefore, children could easily spend hundreds without their parents’ permission.
Using only one button is convenient and makes things more manageable for beginners. However, the FTC said purchases were too easy because of the counterintuitive button configuration. For instance, waking the game from sleep could purchase something if you press the wrong button. Alternatively, players could be charged on the loading screen by tapping the controller.
The 2025 FTC Update
In December 2024, the FTC announced it would send over $72 million in refunds as part of the settlement. You’re fine if you filed a claim by October 8, 2024 — the government agency is likely still reviewing your claim and other people claiming fraud. This first batch of refunds totaled nearly 630,000, but more are likely to come.
Unfortunately, the latest you could’ve applied for a refund was February 14, 2025. If you submitted an application, the FTC will review how much you’ll get based on the claims of others who filed. Paper checks should be cashed within 90 days, and PayPal transactions should be cashed within 30 days. Once you receive the cash, you can spend it on date nights like escape rooms or ice skating.
Did Epic Games Violate the Law?
In 2022, the FTC alleged that Fortnite violated the Children’s Online Privacy Protection Act (COPPA) of 1998. This relatively new law went into effect in 2000, at the dawn of the Internet, and affected how online companies should approach marketing to kids. The code dictates when children need parental consent to perform certain activities, such as buying stuff.
While adults hold the credit cards, the FTC said Epic Games knew children were playing Fortnite. How would they understand? Well, the company sold toys and merchandise in retail stores. Additionally, the game collected children’s information without their parents’ consent. This detail was the crux of the COPPA violation and led to the Fortnite refund announcement.
Additional Violations
Online voice chat in video games has existed for decades. If you’ve played fun co-op titles like Call of Duty, you know how entertaining the lobbies can be. Unfortunately, they can be dangerous for kids if they get on the wrong server. Children who play Fortnite should be paired with people in similar age groups for their safety.
The FTC said that Epic Games’ default settings are harmful for children and teenagers, as they could be matched with adults. In its December 2022 announcement, the agency said kids got bullied, threatened and harassed through text and voice communications. Ultimately, they were exposed to potential psychological trauma and dark consequences.
Early Alarm Sounding
It’s one thing if Epic Games was unaware of the problems and didn’t take action. However, the FTC said employees warned the company about the issues as early as 2017. While Fortnite didn’t come out until that summer, it was still a significant issue in the refund announcement. Personnel suggested that the default settings should have been changed.
If you log into Fortnite for the first time, the initial settings have voice chat turned on. The FTC complaint against Epic Games alleged that children were harassed during gaming sessions. While the company eventually let users turn off the voice chat, it was challenging to find. How can you expect kids to know what to do when playing video games?
What Does the Refund Mean for Fortnite and Epic Games?
Epic Games and Fortnite players are still feeling the impact of the FTC’s refund ruling. How will it affect the publisher in the future? Here are three implications to watch for in the coming years.
1. Reputation
Epic Games can’t afford to lose more players than it has. Research has demonstrated a stark drop in Fortnite players since 2024. For instance, the developers have taken the title in different directions and strayed from the original intent. While evolving is necessary to stay relevant, the company has meddled with game modes and made it less fun.
Ultimately, the FTC announcement is just more bad news for Fortnite. What will parents think when they see the news on TV? Constant stories about the settlement will make them think twice about getting their kids any new games, especially with rising costs and concerns about unwanted charges. Moms and dads could tell their kids no Fortnite, even if they have the game.
2. FTC Scrutiny
If the FTC brings a complaint about one issue, it could open the door to more scrutiny. The regulatory body could examine other Epic Games issues unrelated to Fortnite. For example, what child safety issues exist on titles like Gear of War or Infinity Blade? Rocket League is popular among children, so other areas could have problems with it.
While the $72 million Fortnite refund was significant, Epic Games has been in trouble. As far back as 2007, it encountered legal issues with game studios. In this instance, Silicon Knights sued the company because it couldn’t provide a working game engine. Epic Games ultimately won after five years in court, but the case likely didn’t help its reputation.
3. Financial Impact
Epic Games isn’t necessarily short on money. The company told shareholders it earned about $1.1 billion on its online store just from PC players. You can add an extra $255 million spent on third-party games, such as Grand Theft Auto V and other popular titles. The $72 million refund takes a chunk from the budget and could be significant.
Ultimately, the fines won’t seem much to a company that generates significant revenue. However, it could lead to budget cuts and reduced overhead. The last thing you want is to see mass layoffs and human workers getting fired. The artificial intelligence takeover of the video game industry is already starting, so the lawsuit could push Epic Games toward this strategy more quickly.
Preventing the Fortnite Refund Situation in the Future
No company wants to pay eight-figure settlements, so following the law is essential. How can other publishers ensure they get the most from their games without cheating? It starts with following the FTC’s guidance on COPPA adherence. If kids engage with your content, it’s essential to protect them from harassment and limit how they can purchase items.
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Author
With almost 10 years of experience writing about cars, gear, the outdoors and more, Oscar Collins has covered a broad spectrum of topics during his time as a blogger and freelancer. Oscar currently serves as the editor-in-chief of Modded, which he founded to spread his love of cars with an international audience. He's committed to providing high-quality content on a regular basis with readers across the world. You can find his work on Auto News, Gizmodo, Esquire and similar publications.
