Epic to pay class action loot box settlement with in-game currency

Epic is set to settle a class action lawsuit for its use of random loot boxes in FortniteThe “Save the world” mode by paying the players concerned with the game currency. Rocket league players who have previously purchased loot boxes in this game will also receive an in-game payment.

While Epic never offered loot boxes in FortniteThe mega-popular “Save the World” battle royale mode allowed “Save the World” players to purchase “Loot Llamas” full of random items until early 2019 (amid an uproar international regarding the random trade in loot boxes and its similarity to gambling). Shortly after ending the practice, Epic faced a class action lawsuit alleging, among other things, to have “psychologically manipulated[d] his young players, thinking they “will be lucky”. ”

As part of a proposed settlement for this lawsuit, which Epic says has obtained preliminary approval, all players who have purchased a Lama Llama at any time will be rewarded with 1,000 V-Bucks (worth about $ 8). Even if it settles a US lawsuit, Epic says that same deal will apply to everyone Fortnite players around the world.

Rocket league players will similarly receive 1000 credits (worth approximately $ 9.10) if they purchased a Random Event Crate or Key in this game before Epic ceased offering them in October 2019 (just a few months after its purchase. Rocket league developer Psyonix). Players of both games will not have to do anything to claim the advantage, which will appear in their accounts in the coming days.

A good marketing deal?

Epic estimates around 6.5 million Fortnite players and 2.9 million Rocket league players will receive automatic payments in virtual currency, according to The Verge. This suggests a rough valuation of over $ 78.3 million in digital rewards as part of the settlement.

The actual cost incurred by Epic for the giveaway will likely be much lower, however. Distributing pure virtual currency has minimal direct costs for Epic and only poses an indirect cost in the sense that it replaces the virtual currency purchases these players would have made anyway. Some outdated players won’t end up using their digital windfall at all, while others wouldn’t have spent the extra money in the game.

In a way, the digital giveaway could even be seen as an effective promotion, pulling players into the games and giving them the potential to spend more on additional microtransactions later. In that sense, the settlement is somewhat reminiscent of a Nintendo pricing case that the company settled with prosecutors in 1991. The payment came in the form of a $ 5 coupon that could only be redeemed by purchasing additional Nintendo products, a marketing stunt that Nintendo is probably sad not to have come up with on its own.

In addition to virtual currency, Epic will also provide “up to $ 26.5 million in cash and other benefits to the United States.” Fortnite and Rocket league players “to settle claims. These cash payments (up to $ 50 per claimant) will only be available to players who submit an active claim form establishing that they believe their purchase was” consumer fraud. ” or breach of contract. Minors in California who bought a box of loot “with [their] your own money and without parental permission ”will also be eligible for a cash refund of up to $ 50 if they submit a claim.

“We believe players should know in advance what they are paying when making in-game purchases,” said Epic. written in a tweet announcing the move today. “That’s why today we only offer X-ray llamas that show you the content before you buy them in ‘Save the World'” (and equally transparent plans Rocket league).

While some European countries have banned loot boxes as a form of illegal gambling, legislative efforts to regulate the practice in some US states (and the US Senate) have generally stalled after gaining momentum. in 2018 and 2019.