Consumer Alert
Charged for unwanted items in Fortnite?
By
Andrew Rayo
Consumer Education Specialist
September 19, 2023
Were you or your kids one of the many millions of people charged in Fortnite for unwanted V-Bucks or in-game items (like gear, llamas, or battle passes)? Here’s how to know if you might be eligible to get a refund of some of the money you lost.
Starting today, and over the next month, the FTC will send emails to millions of Fortnite players who might be eligible to get some of their lost money back. The refunds come out of the FTC’s settlement with Epic Games announced last year.
Here’s what to know:
- Watch for an email from the FTC via fortniterefund@rcnotifications.com — by or before October 19, 2023 — with instructions on how to file a claim.
- If you don’t get an email by October 19, 2023, use your Epic account ID to file a claim. Or, call the administrator at 1-833-915-0880 or email admin@fortniterefund.com for help.
- File your claim by January 17, 2024.
For more information, visit ftc.gov/Fortnite. And remember, the FTC will never ask you to pay money to file a claim. If someone says they can get you a refund if you pay them, that’s a scam. Report them at ReportFraud.ftc.gov.
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For Release
FTC Announces Claims Process for Fortnite Players Who Were Charged for Unwanted Items
September 19, 2023
Tags:
- Consumer Protection
- Bureau of Consumer Protection
- consumer refunds
- Credit and Finance
- Payments and Billing
- Gaming
The Federal Trade Commission has begun notifying people who may be entitled to compensation stemming from a settlement finalized in March 2023 with Epic Games over allegations that the Fortnite video game maker used dark patterns and other deceptive practices to trick players into making unwanted purchases.
In a complaint first announced in December 2022, the FTC alleged that Epic games deployed a variety of design tricks aimed at getting consumers of all ages to make unintended in-game purchases. The company also made it easy for children to rack up charges without parental consent and locked the accounts of consumers who disputed unauthorized charges with their credit card companies.
The money provided as part of the $245 million settlement with Epic Games will go to provide refunds to consumers. The FTC has begun the process of notifying more than 37 million people by email that they may be eligible for compensation, a process that will take one month to complete. Consumers will have until January 17, 2024 to submit a claim.
Information about how to file a claim can be found at www.ftc.gov/Fortnite. Consumers who have questions about the claims process can contact the administrator by phone at 1-833-915-0880 or by email at admin@fortniterefund.com.
The Commission’s interactive dashboards for refund data provide a state-by-state breakdown of refunds in FTC cases. In 2022, Commission actions led to more than $392 million in refunds to consumers across the country.
The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.
Press Release Reference
Contact Information
Contact for Consumers
Claims Administrator
admin@fortniterefund.com
Media Contact
Office of Public Affairs
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Consumer Alert
September is National Preparedness Month: Make a plan now
By
Colleen Tressler, FTC, Division of Consumer and Business Education
September 20, 2023
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Extreme weather and natural disasters can occur with little warning. Communities spared in the past have suffered devastating losses this year, and many are still recovering. National Preparedness Month is a great time to get ready for whatever may come your way.
Making a plan is the best way to protect you and your household. The FTC can help: Dealing with Weather Emergencies (in Spanish: Emergencias Climáticas) has practical information to help you prepare for, deal with, and recover from a weather emergency. It also has advice on how to spot, avoid, and report post-disaster frauds and scams.
Like all the FTC’s free resources, the site is mobile-friendly, so you have ready access to information when and where you need it. You’ll find information on:
- Preparing for a Weather Emergency
- Staying Alert to Disaster-related Scams
- Getting Back on Your Feet Financially
You’ll also find Picking Up the Pieces After a Disaster, which is a customizable handout. Add local contacts to help you avoid common post-disaster scams, protect your personal information, and get back on track financially. Then print and distribute in your community.
Share what you know with friends, family, and coworkers and share this blog and the resources at ftc.gov/WeatherEmergencies with your social media followers.
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For Release
FTC Adds Senior Executives Who Played Key Roles in Prime Enrollment Scheme to Case Against Amazon
Amended complaint includes significant evidence redacted in initial complaint revealing extensive knowledge of Prime nonconsensual enrollment and complex cancellation issues
September 20, 2023
Tags:
- Consumer Protection
- Bureau of Consumer Protection
- deceptive/misleading conduct
- Technology
- Advertising and Marketing
- Online Advertising and Marketing
- Advertising and Marketing Basics
The Federal Trade Commission has named three senior Amazon executives in an amended complaint in its case against the company for its years-long effort to enroll consumers into its Prime program without their consent while knowingly making it difficult for consumers to cancel their Prime subscriptions.
Named in the amended complaint are Neil Lindsay, who served as senior vice president overseeing Prime and now serves on the company’s overall leadership team; Russell Grandinetti, who also serves as a senior vice president overseeing Prime; and Jamil Ghani, a company vice president who oversees the Prime subscription program.
In addition to naming these individuals, the amended complaint includes significant new details of Amazon’s alleged misconduct that were redacted in the original complaint, including the contents of internal company emails and messages that show the extent to which the company and its management team were aware of the misconduct.
The FTC’s amended complaint charges that Lindsay, Grandinetti, and Ghani were fully aware of the issues surrounding consumers being subscribed to Prime without their consent and then facing significant hurdles when trying to cancel. The executives were informed by other Amazon employees in emails, meetings, and presentations about these issues and encouraged to make changes to stop Amazon from tricking its customers, but the executives chose not to act, according to the complaint.
The complaint alleges that the company and its executives instead slowed, avoided, and even reversed user experience changes that they knew would reduce nonconsensual enrollment because those changes would also negatively affect Amazon’s bottom line. As one draft internal memo stated, Amazon decided “clarifying” the enrollment process was not the “right approach” because it would cause a “shock” to business performance.
Amazon also created an allegedly labyrinthine cancellation process for Prime that the company called “Iliad,” the name of Homer’s epic about the long, arduous Trojan War. While Amazon—under pressure from the FTC—made some changes to its processes just before the agency’s initial complaint was filed, the Iliad cancellation flow was in place for years. The complaint alleges that Amazon and its leadership—including Lindsay, Grandinetti, and Ghani—slowed or rejected user experience changes that would have made Iliad simpler for consumers because those changes would hurt Amazon’s profits.
Newly Unredacted Information
The unredacted complaint’s allegations also revealed:
- Excerpts from an Amazon document that uses the term “misdirection” to refer to the company’s practice of forcing consumers to find a small blue text link to make a purchase without joining Prime, while using a far more prominent button saying “Get FREE Two-Day Shipping” that actually enrolls consumers in Prime.
- Information about tactics used by the company to force consumers into the complex Iliad cancellation flow, such as a company policy that required Amazon customer service employees to direct consumers who called to cancel Prime to the Iliad flow online, even though customer service agents had the ability to process the cancellation.
- Findings highlighted in a company newsletter that said, “The issue of accidental Prime-sign ups is well documented” and acknowledging that Prime customers “sign[] up accidentally and/or [don’t] see auto-renewal terms.”
- Statements from Amazon employees acknowledging the company’s use of user flows “designed to mislead or trick users to make them do something they don’t want to do, like signing up for a recurring bill.” Amazon employees began raising this issue for company leaders, who refused to take action, as early as 2016.
- Details about Amazon’s attempts to delay and hinder the FTC’s investigation of these issues, including attempting to apply legal privilege to documents that were not privileged and concealing the existence of other relevant, damaging documents.
The Commission vote authorizing the staff to file the complaint was 3-0. The complaint was filed in the U.S. District Court for the Western District of Washington.
NOTE: The Commission files a complaint when it has “reason to believe” that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.
The staff attorneys on this matter are Evan Mendelson, Olivia Jerjian, and Max Nardini of the FTC’s Bureau of Consumer Protection.
The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.
Press Release Reference
Contact Information
Contact for Consumers
FTC Consumer Response Center
Media Contact
Office of Public Affairs
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For Release
FTC Action Leads U.S. Dept. of Education to Forgive Nearly $37 Million in Loans for Students Deceived by University of Phoenix
FTC charged that for-profit university falsely touted relationships and job opportunities with top companies
September 20, 2023
Tags:
The Federal Trade Commission announced today that its enforcement action against the University of Phoenix continues to help students deceived by the for-profit university, as the U.S. Department of Education will forgive nearly $37 million in federal loansfor more than 1,200 students affected by the school’s deceptive practices, based in part on the FTC’s 2019 case.
“Students deceived by the University of Phoenix deserve strong relief, and today’s action is an important step forward,” said Samuel Levine, Director of FTC’s Bureau of Consumer Protection. “We will continue to work with our state and federal partners to protect students.”
“The University of Phoenix brazenly deceived prospective students with false ads to get them to enroll,” said Federal Student Aid Chief Operating Officer Richard Cordray. “Students who trusted the school and wanted to better their lives through education ended up with mounds of debt and useless degrees. Today’s announcement builds on the FTC’s work to provide relief to those affected by Phoenix’s misconduct and delivers on the Biden-Harris Administration’s mission to support student loan borrowers.”
According to the 2019 FTC complaint, University of Phoenix, and its parent company, Apollo Education Group, Inc., falsely claimed that their relationships with top companies created job opportunities specifically for University of Phoenix students and that they worked with these companies to develop their curriculum. The FTC charged that the companies used a multimedia ad campaign to attract students, including ads specifically targeted to military and Latino consumers. The companies’ “Let’s Get to Work” campaign featured several high-profile employers, including Microsoft, Twitter, Adobe, and Yahoo!, giving the false impression that University of Phoenix worked with those companies to create job opportunities for its students.
Today’s announcement by the U.S. Department of Education builds on the FTC’s prior federal court order against the University of Phoenix. As part of the record $191 million action, the school was ordered to pay $50 million to the FTC to make payments to former students and cancel $141 million in private student debt owed directly to the school. The order also prohibits the companies from further deceptive business practices. In March 2021, the FTC sent payments to eligible University of Phoenix students, which resulted in more than $45.6 million in relief. The FTC sent additional payments totaling more than $3.6 million to 130,652 people who cashed their first payment.
The U.S. Department of Education announced that it will approve federal student loan forgiveness for people who attended the University of Phoenix, were deceived by the school’s job placement claims, and submitted a valid application for borrower defense. The agency is continuing to process new and existing applications. All borrowers with approved claims will receive full loan forgiveness. People interested in submitting a claim for loan forgiveness, should visit the Department of Education’s Borrower Defense Loan Discharge informational page.
The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.
Press Release Reference
FTC Sends Nearly $50 Million in Refunds to University of Phoenix Students
Contact Information
Media Contact
Office of Public Affairs
U.S. Department of Education (press office)
press@ed.gov
Consumer Resources
Federal Student Aid
Borrower Defense Loan Discharge Application
