by reducing the size and prominence of the "undo" button, relabelling this a "cancel purchase" button, and requiring it to be held down rather than simply clicked). Using other "dark patterns" to deter users from cancelling or requesting virtual currency charge refunds (e.g.Locking the accounts of customers who disputed unauthorised charges with their credit card companies.Allowing children to easily make in-game purchases without their parents' authorization by storing payment information for future purchases.using the same square button to both preview different Fortnite character "skins" as well as to purchase them). Using confusing button configurations which led players of all ages to make unintended game purchases (e.g.Using default settings which enabled live text and voice communication between children, teens and adult strangers "on-by-default".Knowingly collecting personal data from children without first obtaining verifiable parental consent, particularly given evidence of Epic's marketing towards children and insufficient "age-gating". In short, the allegations boiled down to: In its federal court and administrative complaints the FTC sets out what it saw as the most concerning violations of COPPA and the FTC Act. The company has since made its own announcement outlining the extensive changes it has made to its practices in the wake of the FTC's investigations. The FTC announced on 19 December 2022 that it had secured an agreement with Epic to pay $520 million, made up of: a $275 million penalty for violating the Children's Online Privacy Protection Act ("COPPA") and $245 million in refunds for use of "dark patterns" that led customers into making unwanted charges. mechanisms for identifying and removing harmful and illegal content (such as hate speech), as per the EU's Digital Services Act and the UK's prospective Online Safety Bill.the creation of age appropriate communication services and default high privacy settings, as per the UK Age Appropriate Design Code (and a version of which is also coming to California!) and.the avoidance of dark patterns, as per the European Data Protection Board's guidelines.Thirdly, it underlines the need to start thinking about a joined-up compliance strategy on both sides of the Atlantic. Secondly, it evidences the kind of protections which regulators in all jurisdictions may start to expect. (makers of "Fortnite"), although occurring in the US, is important for three reasons.įirstly, it extends the cross-Atlantic trend of enforcement in relation to protecting children. Whilst so far there have been only a few high profile enforcement actions in Europe to guide companies in their compliance journey, this recent US settlement between the US Federal Trade Commission (FTC) and Epic Games, Inc. As readers of this blog will be aware, protecting children's data online is becoming a key topic for lawmakers and regulators in Europe.
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