Fortnite Settlement Provides $126M in Payouts to Players Targeted With Unwanted Items: FTC

Roughly $45 million in refund money remains available, and players who have not yet filed a claim with the FTC must do so by July 9, 2025 to be eligible.

Federal regulators are sending out another $126 million in refunds to Fortnite players who were wrongfully charged for in-game purchases they did not intend to make, marking the latest chapter in one of the largest consumer protection settlements in gaming history.

The settlement stems from years of consumer and parental complaints about Fortnite’s in-game purchasing system, which many alleged was designed to exploit young players. 

In response, the U.S. Federal Trade Commission (FTC) launched an investigation in 2022 to determine whether the game’s developer, Epic Games, was violating federal laws by using deceptive billing practices and collecting children’s personal data without proper consent.

The FTC’s investigation uncovered a range of troubling tactics. Although Fortnite is free to play, its business model centers on users, many of them minors, buying cosmetic upgrades and seasonal perks using virtual currency called V-Bucks. Purchases could be made with just a single button press, often without a confirmation screen or any parental involvement. 

Officials found that Epic intentionally configured its user interface to encourage accidental purchases, stored credit card information without clear notice, and made it difficult for users to cancel transactions or request refunds. In some cases, when families disputed charges through their credit card companies, Epic responded by locking their accounts entirely, blocking access to all previously purchased content.

As a result of its findings, the FTC announced two landmark settlements with Epic Games in December 2022 totaling $520 million, one of the largest consumer protection actions in video game history. 

The FTC first required Epic to pay $245 million in refunds to compensate players who were wrongfully charged for in-game purchases. The second imposed a $275 million civil penalty for violations of the Children’s Online Privacy Protection Act (COPPA), which prohibits collecting personal data from children under 13 without parental consent.

Under the terms of the refund settlement, Epic is permanently barred from charging players without “express, informed consent” and must implement clearer, more accessible cancellation and refund tools. The company is also prohibited from locking players out of their accounts solely because they disputed unauthorized charges. 

The COPPA settlement further required Epic to disable live voice and text chat features by default for minors, delete improperly collected data, and establish an independent privacy program subject to regular audits.

To facilitate restitution, the FTC began issuing refunds in December 2024, returning more than $72 million to over 629,000 players in the first round of payments. 

In a press release issued on June 25, 2025, the FTC announced it had sent out an additional 969,173 refund payments by check and PayPal, totaling more than $126 million. This brings the total amount refunded to consumers so far to nearly $200 million, with approximately $45 million still remaining for eligible players who have not yet submitted a claim.

Those impacted still have time to participate. Consumers who believe they were charged for unwanted Fortnite items have until July 9, 2025, to submit a claim at www.ftc.gov/fortnite.

Video Game Addiction Lawsuits

Epic Games is also facing a wave of lawsuits from parents who claim Fortnite was deliberately designed to be addictive to children and teens. The lawsuits allege that Epic used psychological tactics, including reward loops and social pressure, to keep young players engaged for hours and encourage excessive in-game spending.

Some complaints claim the company worked with behavioral experts and used patented monetization systems to develop game mechanics that exploit children’s developing brains. These tactics, plaintiffs argue, were intended to maximize profits at the expense of users’ mental and emotional health.

Epic is not alone. Similar lawsuits are being filed against other major video game companies, with parents across the country alleging that the industry prioritized engagement and revenue over safety—leaving minors vulnerable to addiction, behavioral issues and long-term harm.

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