Dividends and Fortnite maker to pay $520 million to settle FTC cases over privacy, in-game purchases

All companies collect information, some use it better than others, but all companies collect information. For those in the consumer market, the issue is the cost of acquiring a new customer versus attracting revenue from existing customers. If your existing customers like your product, maybe they will like other products and services your company offers. When companies collect the information, the assumption is the person paying is both old enough and rational enough to make an informed decision. But what happens to companies that cater to young people?

In an article by Diane Bartz of Reuters, Fortnight creator Epic Games will pay $520 million to settle allegations that it illegally collected children’s personal information and tricked people into making purchases.

For gamers, after you have reached a certain level of skill, most gamers want to advance in the game and to do that companies such as Epic Games and many others allowed its gamers to buy products in the game to advance. If the person is an adult, no concern for the FTC (Federal Trace Commission), but what if the gamers are kids? Epic Games was fined for pay-to-win and pay-to-progress mechanics that allowed gamers to buy no matter their age.

Epic Games says they have created features such as easier-to-access parental controls, a PIN requirement to allow parents to authorize purchases and a daily limit for kids under 13.

Jeff Chester of the Center for Digital Democracy was pleased with the settlement.

Linking to dividend paying stocks, all companies collect information and many use artificial intelligence to analyze the information. It is expected with the larger companies and eventually will come to small and medium sized companies. If the company markets to young people, it has to controls in place not to abuse the young people. We as a society do not believe young people should be making decisions on a range of issues, the company has to respect that in the marketplace. Once the age has increased, the limits are much less, and it is expected companies to take advantage of as many opportunities as possible. For your investments, how are they using AI?

There are more questions than answers, till the next time – to raising questions.

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