The U.S. Federal Trade Commission made a significant announcement on Monday. It is now sending the first batch of payments to consumers who were tricked by Fortnite maker Epic Games into making unwanted purchases. The total amount of these refunds amounts to over $72 million. This settlement, which was first announced in December 2022 and finalized in March 2023, imposed a fine of $245 million on the game due to its "counterintuitive, inconsistent, and confusing button configuration." This configuration led consumers to make unintended purchases by mistakenly clicking the wrong button.

Focus on "Dark Patterns" by the FTC

In recent months, the use of such tricks, commonly referred to as "dark patterns," has been a key area of concern for the FTC. The Commission has released findings regarding the use of these deceptive techniques in subscription apps. It has also targeted companies that have exploited consumers through the use of dark patterns, including neobank Dave and Amazon, among others.

Epic Games' Case and Confusing Navigation

In the case of Epic Games, the FTC discovered that confusing navigation was the cause of customers accidentally making purchases. For example, when players woke the game from a sleep mode, they could be charged even while the game was still loading. Additionally, they were charged when pressing a button to preview an item. These tactics led to many Fortnite players, mainly children, incurring unauthorized charges without any parental involvement. The FTC emphasized the seriousness of this issue.

Epic Games' Settlement Requirements

As part of its settlement with the FTC, Epic Games was obligated to stop using these digital design tricks. It also had to obtain affirmative consent for digital purchases. Furthermore, Epic Games is prohibited from locking the accounts of customers who dispute charges for digital goods and services purchased. This settlement aims to protect consumers from such unfair practices.

Refunds and Payment Distribution

The $72 million in refunds being sent to the harmed customers is the first round of payments from the settlement. Further payments are planned to be distributed at a later date. On Monday, 629,344 payments are being made, with half through PayPal and half through checks. Consumers had the option to select their preferred payment method when they completed their claim form. Affected customers are required to redeem their PayPal payment within 30 days and cash checks within 90 days.

Consumer Claims and Average Payment

Consumers still have the opportunity to submit a claim via an online form if they have not already done so. The average payment is around $114. This indicates the significant financial impact on consumers who were deceived by Epic Games. The FTC's actions aim to provide some relief to these affected customers and hold Epic Games accountable for its actions.

In Wichita, Kansas, a significant event has unfolded that has far-reaching implications for the local car dealership industry. The Sedgwick County District Attorney's Office has taken a firm stand against a Wichita car dealership, Carnation LLC, due to a series of deceptive practices.

Uncovering the Deceptive Practices of a Wichita Car Dealership

Consumer Complaint Leads to a Massive Judgment

A consumer complaint served as the catalyst for a nearly $400,000 judgment against the Wichita car dealership. The Sedgwick County District Attorney's Office revealed that the owner of Carnation LLC, Kayode Ajibolade (also known as Olukayode I. Ajibolade), was accused of engaging in deceptive acts and willfully violating a previous consent judgment under the Kansas Consumer Protection Act (KCPA). The details are astonishing. After purchasing a car, a consumer discovered an airbag simulator device that concealed the fact that the airbag had been deployed. Further investigation by the Consumer Protection Division found 12 more cars sold by Ajibolade and Carnation in the first quarter of 2023 with blown airbags. And yet, these crucial details were not disclosed when the cars were sold from the dealership's lot at 1301 E. Lincoln.This isn't an isolated incident. In 2019, Carnation LLC had already entered into a prior consent judgment with the DA's Consumer Protection Division, admitting to being deceptive by failing to disclose a blown airbag. The current case is a clear continuation of these unethical practices.

The Court's Rulings and Consequences

The court's findings were severe. In April, it was determined that Carnation's sales of 13 cars with undisclosed and concealed blown airbags constituted willful violations of the 2019 consent judgment and the KCPA. As a result, the dealership was ordered to pay $2,000.00 per car in restitution to each of the 12 consumers, totaling $24,000.00. This restitution was later paid by the dealership's bonding company. Additionally, Carnation was ordered to pay $390,000.00 in civil penalties, along with court costs and investigation fees.In the latest default judgment entered against Ajibolade on Nov. 22, he was found to be personally liable, "jointly and severally" with Carnation LLC, for the remaining balance of the judgment, $394,197. This led to the court's decision to revoke Ajibolade's license to do business and permanently prohibit him from selling cars in Kansas.

Buyer Beware: Tips for a Safe Car Purchase

In a news release on the judgment against Carnation LLC and its owner, Sedgwick County District Attorney Marc Bennett emphasized the importance of buyer caution. He reminded buyers to exercise care when shopping for a used vehicle. Since devices can be used to conceal that a car is missing functioning airbags, even if inspected by a mechanic, it is crucial to also examine a Carfax or similar history of the vehicle before purchase. This can help identify accidents that may have resulted in the deployment of airbags.In addition, Bennett recommended that consumers perform a general online search of the VIN number of a prospective car purchase. This simple step can often reveal photos of prior damage to the car, providing valuable insights for a safe and informed purchase.