Digital Product Manipulation: Lessons from the Mistakes of Epic Games and Other Tech Giants

In recent years, the video game market has found itself in the mainstream of the digital economy. But along with innovation and creativity came new ethical challenges. One of them was the use of “dark patterns” – sophisticated manipulations in the design of the interface, forcing users to take actions that they did not plan. The most high-profile example of this was the Federal Trade Commission’s investigation of US v Epic Games – the developer of the popular game Fortnite.

In general, dark patterns in video game design are a style that uses dark colors and shadows to create a certain atmosphere. This style is often used in horror, thriller and fantasy to add tension, mystery or mysticism to the plot. Dark blues, blacks, and other dark tones, as well as contrasts of light and shadow, are great for creating depth and drama.

How “dark patterns” “burned” Epic Games

Epic Games – one of the key players in the industry – created a game interface that facilitated unwanted purchases. During the game, the player could accidentally press a button that debited money without the ability to quickly cancel the transaction. Imagine a child who clicked “Buy” instead of “Continue” and spent their parents’ money on game “requirements”. This approach brought millions of profits to companies, but grossly violated the rights of consumers.

US Federal Trade Commission reacted on this mess instantly. After numerous complaints, especially from parents of underage gamers, the commission accused Epic Games of using manipulative mechanisms. This led to a record fine of $245 million, part of which went to compensate the victims. The first tranche of $72 million has already been paid to more than 629 thousand players, the average compensation was about $114.

Epic Games tried to get rich by encouraging users to make impulse purchases. Transaction data was hidden or presented in incomprehensible language, and it was difficult to cancel payments. It came as a shock to the players: they realized that they were forced to spend money without their knowledge and consent. This sparked outrage and calls for greater transparency in the industry.

If you lie even once – who will believe you?

The company’s reputational losses turned out to be no less painful than financial losses. Epic Games lost the trust of its gamers, and competitors got a chance to attract a new audience. The company was forced to review the design of the interface and correct the shortcomings.

Epic Games has updated the purchase confirmation system: now every transaction requires double confirmation, and users receive detailed information about the payment even before it is completed. But will these steps help restore consumer confidence?

This case became a signal for all game developers. The US Federal Trade Commission and other regulators have shown they are willing to step in if consumer rights are violated. It became a lesson for other companies that unethical practices lead to big losses. After this incident, many gamers began to demand transparency in games, and parents – more protection for children online.

This incident affected not only Epic Games, but also the entire video game market. Regulators around the world are increasingly scrutinizing the policies of digital platforms. It is likely that consumer protection laws will be strengthened in the future. Players, taking into account the precedent with Epic Games, have become more aware and attentive to their actions on the Internet. This story demonstrates that ethics and transparency in business are vital to trust and survival.

Manipulation in digital products: lessons from the mistakes of Epic Games and other technological giants

Epic Games is not the first company to face accusations of using manipulative methods. The situation with “dark patterns” in the Fortnite interface became a vivid example of how the desire to increase profits can turn into a disaster. But this is only one link in a long chain of similar cases.

Yes, 10 years ago, Apple and Google were accused of allowing children to make expensive purchases in mobile applications. Teens could spend hundreds of dollars using their parents’ credit cards. That time, Apple paid $32.5 million in compensation, and Google – $19 million. as a result, both companies introduced double verification of transactions.

In 2016, Amazon faced a similar problem: children spent money on game services without their parents’ knowledge. The company paid a $70 million fine and changed its purchasing policy, making it more transparent.

Valve is the owner of the Steam platform, notorious for refusing to refund money for digital games. An Australian court ordered the company to pay a $3 million fine and allow players to receive refunds.

One of the most controversial practices in gaming has become loot boxes – boxes with random rewards in EA’s FIFA games. Players, and children among them, spent large sums, trying to get valuable items. Due to complaints from users and outraged parents, Belgium banned loot boxes, classifying them as gambling.

Why do businesses resort to such intrusive online tactics?

Many of us are annoyed by the Internet with constant pop-ups, cookies that track our activity, and manipulative notifications that force us to sign up for unnecessary services. Why do companies use such intrusive tactics? Because they work.

Research, published in the Journal of Legal Analysis, demonstrated that manipulative design effectively entices users to purchase unnecessary services. Researchers at the University of Chicago found that complex interfaces that make it difficult for users to opt out significantly increase subscriptions. Participants had to click on manipulative screens with options such as “Accept and continue (recommended)” or “Other options”.

Additional steps that users had to take or complex wording doubled the number of subscriptions, while more aggressive pop-ups increased this to 42%. The use of dark patterns – manipulative designs – also increased the number of subscriptions. People did not even feel particularly angry because of these manipulations. Moreover, the most aggressive pop-ups generated more subscriptions.

Manipulative techniques such as “social proof” (claiming that others have already subscribed) or withholding information (opaque terms). Interestingly, a price increase or a limited-time offer timer often does not influence users’ decisions when a manipulative design is used.

According to experts, the popularity of such practices is explained by the fact that they are beneficial to companies. Although consumers are increasingly aware of these tricks, many still fall for them. Organizations such as the US Federal Trade Commission are currently working to regulate these manipulative strategies.

Instant profits due to manipulation – big losses in the future

These precedents have shown that short-term gains through manipulation can lead to large losses in the long run. Companies that act unethically risk losing the trust of users, receiving fines and damaging their reputation.

The main lesson that the players of the digital economy should learn is the necessity of transparency and responsibility. Users must understand the terms of the transactions offered to them, and companies must provide the ability to cancel unwanted purchases. Fortunately, consumers are becoming more aware and demanding, and regulators are ready to protect their rights.

The cases of Epic Games, Apple, Google, EA and other market participants show that innovation in the digital economy must go hand in hand with high ethical standards. After all, success is measured not only by financial indicators, but also by trust, which cannot be bought even with billions.

Tetyana Viktorova