The Federal Trade Commission (FTC) has announced that it has fined Epic Games, the maker of the popular video game Fortnite, $520 million for violating the Children’s Online Privacy Protection Act (COPPA). This is the highest fine for violating an FTC regulation to date. The FTC alleges that Epic Games allowed children under the age of 13 to register for the game without obtaining verifiable parental consent, as required by COPPA. The game has over 250 million registered users, and the FTC estimates that millions of children under the age of 13 have played the game.

In addition to the fine, the FTC has ordered Epic Games to delete all personal information of children who have played the game and to implement a comprehensive data management program to ensure compliance with COPPA in the future. The company has also been ordered to obtain verifiable parental consent before collecting any personal information from children under the age of 13.

COPPA is a federal law that requires websites and online services to obtain verifiable parental consent before collecting personal information from children under the age of 13. The law is intended to protect children’s privacy and safety online by establishing rules for the collection, use, and disclosure of personal information of children.

The FTC has been cracking down on companies that violate COPPA in recent years, and has reached settlements with several major tech companies, including Google, Apple, and Amazon, for similar violations. Earlier this year, the FTC also announced a $1.1 million settlement with TikTok over COPPA violations.

Epic Games stated in a press release that it accepts the fine and wants to prioritize customer protection while “[providing” the best experience for our players”. The company also stated that it is working to develop a “tailored experience that is safe and inclusive for younger players”, most notably Cabined Accounts, to allow children to continue playing their games with reduced privacy risks.

To avoid a situation like this one in your own company, a preventive approach to privacy compliance is the best approach. And there’s no better way to take a preventive approach than with 4Comply, our state-of-the-art privacy compliance software. Get in touch with us today for a free demo.