Microsoft to Pay $20M Fine for Child Data Violations

The Federal Trade Commission (FTC) has said Microsoft will pay $20 million to settle government charges that it collected personal information from children without their parent’s consent.

According to FTC, Microsoft collected personal data from children under age 13, between 2015 and 2020. Report says the children signed up to its Xbox gaming system without their parent’s permission and this information was retained.

Microsoft failed to inform parents about its data collection policies, alleged FTC. The commission said Microsoft violated a law called the Children’s Online Privacy Protection Act (COPPA). The law requires websites aimed towards children to obtain a parent’s consent and to inform the parent about personal data collected from a child.

To create an account on Xbox, users must provide their first and last names, email addresses and dates of birth. FTC says Microsoft collected these information “without notifying their parents or obtaining their parent’s consent, and by illegally retaining children’s personal information.”

Director of the FTC’s Bureau of Consumer Protection, Samuel Levine said “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.”

“This action should also make it abundantly clear that kids’ avatars, biometric data,and health information are not exempt from COPPA”, said Levine.

The FTC said Mircosoft will be required to “take several steps to bolster privacy protections for child users of its Xbox system.”

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