Analysis of Proposed Consent Order to Aid Public Comment

In the Matter of Epic Games, Inc.

File No. 192 3203

The Federal Trade Commission (“FTC” or “Commission”) has accepted, subject to final 

approval, an agreement containing a consent order from Epic Games, Inc. (“Respondent”). The 

proposed consent order has been placed on the public record for thirty (30) days for

receipt of comments by interested persons. Comments received during this period will become

part of the public record. After thirty (30) days, the Commission will again review the

agreement and the comments received, and will decide whether it should withdraw from the

agreement or make final the agreement’s proposed order.

Respondent is the developer and distributor of the video game Fortnite. Respondent bills 

users for the purchase of virtual currency (V-bucks) and also bills users’ V-bucks for the 

purchase of items within Fortnite. This matter concerns Epic’s (1) billing for charges without

having obtained account holders’ express, informed consent and (2) deactivating the accounts of 

consumers who exercise their right to dispute charges.

The Commission’s proposed complaint alleges that Epic saved parental credit card 

information by default and permitted subsequent unauthorized purchases by children. 

Specifically, children were permitted to make V-bucks purchases simply by pressing buttons, 

without parental or card holder action or consent (for example, without entry of a pin, password, 

or CVV number). Epic has also billed users of all ages for unauthorized V-bucks charges within 

Fortnite; Epic designed purchase flows within the game so that unwanted charges were easy to 

incur, as Epic was aware from the more than one million complaints it received about the issue. 

Finally, Epic has deactivated—in many cases, permanently—the accounts of consumers who 

disputed unauthorized charges, denying them access to paid-for content. 

The proposed consent order contains provisions designed to prevent Respondent from

engaging in similar acts or practices in the future. Part I prohibits Respondent from billing 

consumers for charges without procuring their express, informed consent. Part II bars 

Respondent from denying consumers access to their accounts based on their exercise of 

chargeback rights. Part III requires Respondent to pay $245,000,000 in monetary relief. Part IV

contains additional requirements regarding monetary relief. Part V requires Respondent to 

provide sufficient customer information to enable the Commission to administer consumer 

redress.

Parts VI through X are reporting and compliance provisions. Part VI requires

Respondent to acknowledge receipt of the order, to provide a copy of the order to certain

current and future principals, officers, directors, and employees, and to obtain an

acknowledgement from each such person that he or she has received a copy of the order. Part 

VII requires Respondent to file a compliance report within one year after the order becomes final

and to notify the Commission within 14 days of certain changes that would affect compliance

with the order. Part VIII requires Respondent to maintain certain records, including records

necessary to demonstrate compliance with the order. Part IX requires Respondent to submit

additional compliance reports when requested by the Commission and to permit the Commission
or its representatives to interview Respondent’s personnel. Finally, Part X is a “sunset” 

provision, terminating the order after twenty (20) years, with certain exceptions.

The purpose of this analysis is to aid public comment on the proposed order. It is not

intended to constitute an official interpretation of the proposed order or to modify its terms in

any way.