Epic Games will pay a record-breaking $520 million settlement to the FTC.

The creator of the popular video game "Fortnite," Epic Games, has agreed to pay the US government a total of $520 million to resolve claims. The US government made allegations against Epic Games that it had deceived millions of players, including kids and teenagers, into making undesirable purchases, and this led to a violation of a federal law that protects the privacy of children.

Epic has agreed to make a $275 million payment to the US government to settle claims that it broke the Children's Online Privacy Protection Act (COPPA) by collecting personal data from kids under the age of 13 without first getting their parents' verifiable consent. It is the largest fine that the FTC has ever imposed for violating a rule that it has put into effect, according to the agency.

The agreement reflects an evolution in how US laws are applied to the video gaming industry, Said Epic Games through a blog post addressing the twin settlements.

Epic also said, in the blog post, "No developer creates a game with the intention of ending up here". We accepted this agreement because we want Epic to be at the forefront of consumer protection and provide the best experience for our players, " they further said.

The US District Court for the Eastern District of North Carolina received the complaint and proposed settlement from the FTC regarding the privacy of children. The FTC also claimed that Epic's default settings for matchmaking and in-game communications exposed children to bullying and harassment, in addition to the alleged illegal collection of children's data.

An administrative complaint was filed with the FTC regarding the allegations that Epic's design choices were misleading. According to the complaint, Epic made it extremely simple for children to purchase in-game items without the consent of their parents by simply pressing a button or clicking a button. As a result, the company received more than one million complaints from parents about unauthorized charges.

The FTC also said that Epic Games made it harder to cancel purchases of in-game items by hiding the option at the bottom of the screen and making it necessary for customers to press and hold a button on their controllers to do so. According to the FTC, surveys revealed that accidental charges were the "number one " users clicked on the cancel button when it was more prominently displayed. As a result, those design choices were allegedly implemented.

Epic is not allowed to use dark patterns or charge customers without their consent as a result of the company's agreement with the FTC, which is not yet final. After it is approved, the agreement will be in effect for a period of 20 years.