Epic Games loses lawsuit over illegal advertising for kids

Epic Games, the creator of the immensely popular game Fortnite, has lost a lawsuit against the Netherlands Authority for Consumers and Markets (ACM) over unfair trade practices in Battle Royale mode in the game Fortnite.

In December 2023, Epic Games received multiple fines totaling €1.125 million from the ACM.

According to the Dutch competition regulator, advertising in the game Fortnite directly encouraged children to make purchases and forced them to make decisions under time pressure about unclear and complex offers.

To boost the sales numbers of in-game purchases, the game developer used slogans like “Get it now” or “Grab it.” Additionally, Epic Games displayed timers on the screen, creating a sense of scarcity, as players would otherwise miss out on the offer. However, these timers were false and designed to encourage players to make purchases.

The ACM called this “an aggressive commercial practice that is prohibited under all circumstances.”

Therefore, the regulator issued two fines to Epic Games totaling €1.125 million. The game developer appealed the decision at the Rotterdam Court.

The judge, who published his ruling earlier this week, sides with the regulator.

“The court finds that the Netherlands Authority for Consumers and Markets has demonstrated that the commercial practice described could significantly distort the economic behavior of children,” the ruling states.

The court refers to two independent inquiries, which were conducted by market researcher Motivaction and children’s rights organization UNICEF. The first inquiry found that 37% of all children playing Fortnite Battle Royale actually make in-game purchases. UNICEF’s research showed that children who buy items in games such as Fortnite regularly regret their purchases.

Furthermore, scientific literature also shows that the younger the players are, the more likely they are to buy items from the in-game shop. In addition, children are more susceptible to scarcity claims, such as countdown timers, and therefore make more impulse purchases.

In short, Epic Games will have to pay the fines the ACM imposed on the company. The game developer has informed Dutch news outlet RTL Z that it will comply with the court’s ruling.

“We addressed ACM’s concerns in April 2024. Players under the age of 18 cannot purchase items that are available in the Item Shop for less than 48 hours,” it said.

Epic Games also points out that parents can set a PIN code to authorize purchases in the game.

The game developer wouldn’t say whether it will appeal the Rotterdam Court’s decision.

Unlock more exclusive Cybernews content on YouTube.