Lessons from the Fortnite Refunds: What the FTC’s $126M Settlement Reveals

In a significant development in consumer protection enforcement, the Federal Trade Commission (FTC) has approved $126 million in refunds for nearly one million Fortnite players, marking the second phase of a broader $520 million settlement with Epic Games, according to an article by Bleeping Computer. 

This action follows allegations that the gaming giant employed deceptive design practices, commonly referred to as “dark patterns,” to induce unintentional in-game purchases, particularly among minors. The FTC also accused Epic of violating children’s privacy laws and employing aggressive billing practices that bypassed meaningful consent.

These deceptive tactics included confusing purchase prompts, misleading offers, and charges triggered during moments such as loading screens or game previews, often without requiring explicit user confirmation. The challenges didn’t end there: players seeking redress faced a burdensome dispute process that led many to abandon their claims. In some cases, Epic even locked users out of their accounts if they disputed charges.

The refund program, which began with a $72 million disbursement in 2024, has now expanded. The average reimbursement per user has increased to $130 in this latest round. Importantly, the claims portal has reopened through July 9, 2025, providing eligible players or their parents with a renewed opportunity to seek redress.

For risk managers, the Fortnite settlement serves as a high-profile case study in regulatory enforcement, digital consent, and ethical user interface design. As regulators crack down on dark patterns, organizations across industries should reexamine their digital interfaces and user authorization flows to mitigate legal exposure and preserve consumer trust.