Microsoft will pay $20 million to resolve FTC claims that it improperly acquired sensitive data from children without their parents’ approval, the FTC announced on Monday.
According to the FTC, the corporation had been charged with violating the U.S. Children’s Online Privacy Protection Act (COPPA) by gathering private data from children who signed up for its Xbox gaming system without informing their parents or getting their consent and by storing their personal data.
The judgment orders Microsoft to take steps to tighten privacy protections for its Xbox system’s kids. According to the FTC, it will strengthen COPPA safeguards to third-party game publishers with whom Microsoft exchanges kid’s data.
As per the Microsoft spokesperson, the organization was dedicated to following the judgment. The spokesperson also added that the procedure for setting up an account will be updated and a data storage issue will be fixed.
“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,” mentioned 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,” Levine stated.
The legislation requires online services and websites intended for children under the age of 13 to tell parents about the personal information they collect and to acquire verified parental approval before collecting and processing the children’s personal information.
According to the lawsuit, Microsoft preserved data obtained from minors during the account creation process from 2015 to 2020, even when a parent failed to finish the procedure.
