Technologies

Fortnite Maker Epic Games Will Pay Over $500 Million for FTC Complaints

The video game maker agreed to pay over allegations it violated children’s privacy and tricked gamers into making unwanted purchases.

Epic Games, the maker of the popular video game Fortnite, has reached an agreement with the Federal Trade Commission to change some default settings and to pay $520 million over allegations that it violated children’s privacy and used «design tricks» that caused players to make unwanted purchase, the FTC said Monday.

«Epic used privacy-invasive default settings and deceptive interfaces that tricked Fortnite users, including teenagers and children,» said FTC Chair Lina M. Khan in the statement about the agreement.

Epic Games will pay a $275 million penalty for privacy violations. The FTC said that Epic Games collected personal information from children under the age of 13 without the consent of their parents in violation of the Children’s Online Privacy Protection Act and that, by setting voice and text communications on by default, the game opened children and teens to bullying and harassment from strangers. Epic Games has also agreed to set voice and text communications off by default.

The other portion, $245 million, will be used by the FTC to refund consumers who were unfairly charged for in-game purchases. The FTC called out how Epic enticed players to make unwanted purchases and its failure to require confirmation of purchases, which allowed children and teens to purchase hundreds of dollars worth of in-game merchandise before parents knew their cards had been charged.

In a statement posted to Epic Games’ website, the company accepted the decision and called on the gaming industry to adopt practices that better reflect today’s gaming environment, saying, «No developer creates a game with the intention of ending up here.»

«Statutes written decades ago don’t specify how gaming ecosystems should operate. The laws have not changed, but their application has evolved and long-standing industry practices are no longer enough. We accepted this agreement because we want Epic to be at the forefront of consumer protection and provide the best experience for our players,» the post read.

The agreement is subject to a 30-day comment period. The FTC will disburse the $245 million for eligible customers.

Technologies

Yes, Trump’s New 25% Apple Tariff Could Drive Up iPhone Prices Even More. Should You Buy One Now?

Technologies

Trump to Apple: Build iPhones in the US or Face 25% Tariffs

The president is putting pressure on the world’s biggest tech company to move manufacturing stateside.

Even as Apple has been shifting some of its manufacturing and supply-chain strategies in recent months in response to US-imposed tariffs against China, the world’s biggest tech company has another tariff issue it may need to content with.

President Donald Trump posted on TruthSocial Friday that a tariff of «at least 25% must be paid by Apple» if the company doesn’t manufacture and build iPhones in the US.

The post reads in full:

I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the UnitedStates of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your for your attention to this matter!

The post follows previous comments made by the president about Apple CEO Tim Cook in which he said, «I said to him, Tim, you’re my friend, I treated you very good. You’re coming here with $500 billion but now I hear you building all over India. I don’t want you building in India.»

Trump said at the time that Cook promised to increase iPhone manufacturing in the US, but experts have said that full iPhone production based in the US would take years and would probably not apply to some of the company’s more advanced iPhone models, which would still be primarily made in China.

Earlier this year, the US imposed steep tariffs against exports from China, but rolled back some of them for 90 days. An exemption was made for smartphones and computers, but it’s unclear if that will hold and for how long.

A representative for Apple did not immediately respond to a request for comment.

Technologies

Why Amazon Is Giving Surprise Refunds for Years-Old Purchases (And If You’ll Get One)

Recent internal reviews at Amazon unleashed a wave of new refunds: Some are getting more than $1,000 back from purchases made up to 7 years ago.

Amazon buyers are reporting an influx of unexpected refunds from products they ordered months or even years ago, with one customer on LinkedIn saying he received a refund of $1,800 for a smart TV bought seven years ago. Others made similar comments about products bought long ago.

According to Bloomberg, the new refunds are because of changes Amazon made after an internal review. That review may be related to a 2023 consumer lawsuit by a group of Amazon shoppers who claimed that Amazon had reversed their legitimate return-related refunds.

A representative for Amazon told CNET that only a small number of customers would be affected.

«Following a recent internal review, we identified a very small subset of returns where we issued a refund without the payment completing, or where we could not verify that the correct item had been sent back to us so no refund was issued,» an Amazon representative said. «There is no action required from customers to receive the refunds, and we have fixed the payment issue.»

In its latest earnings call, Amazon reported a one-time expense of $1 billion connected to refunds that the company had not yet sent out. These earmarked funds could be responsible for the sudden updates that shoppers are now seeing regarding purchases as far back as 2018.

Read more: I’ve Been Tracking Tariff Price Impacts Every Day and Here’s What I’ve Found So Far

If you receive an email about a surprise refund from Amazon orders, it may be related to these changes Amazon has made behind the scenes. You may still want to confirm it’s not fraud by logging into your Amazon account or making a quick service call, especially if it’s a larger amount like a payment for a TV. Scammers may be taking advantage of this news, too, so be wary of any notification that asks you for financial information, which Amazon should already have.