FTC Fines Microsoft $20 Million For Keeping Children’s Info

A "Data Retention Glitch"

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Microsoft has agreed to pay million to the U.S. Federal Trade Commission for illegally collecting personal information from children on Xbox consoles without their parent’s consent.

According to an FTC statement, Microsoft violated the Children’s Online Privacy Protection Act (COPPA) by collecting personal information from children who signed up for accounts on Xbox consoles without notifying their parents or obtaining their parents’ consent. Microsoft will now be required to take several steps to ensure this doesn’t happen to children’s information again on their platforms or through third-party channels.

Ftc Federal Trade Commission Fines Microsoft

 “Our proposed order makes it easier for parents to protect their children’s privacy on Xbox, and limits what information Microsoft can collect and retain about kids,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “This action should also make it abundantly clear that kids’ avatars, biometric data, and health information are not exempt from COPPA.”

Microsoft is calling the breach in the Children’s Online Privacy Protection Act a “technical glitch,” and in a statement on the Xbox Wire, CVP of Xbox Player Services, Dave McCarthy, wrote: “Regrettably, we did not meet customer expectations and are committed to complying with the order to continue improving upon our safety measures.”

Dave Mccarthy Cvp Of Xbox Player Services Microsoft
Dave McCarthy, CVP of Xbox Player Services

“Over the coming months, players who are under the age of 13 and created an account prior to May 2021 will require parental reconsent – meaning a parent will be prompted to reverify the account and grant permission for their child to continue gameplay and activity on Xbox. We are committed to making this process as seamless as possible.”

With children’s privacy and protection of the utmost importance, the FTC continues to regulate companies not doing their part, as they’ve done against Epic Games, the maker of Fortnite, as well as Amazon Ring, and as a part of the ongoing Microsoft-Activision acquisition discussions.

Steven Green
Steven Green

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