Microsoft agrees to $20m settlement for violating child privacy laws
JournalismPakistan.com | Published: 7 June 2023
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Microsoft has agreed to a $20 million settlement due to violations of child privacy regulations. The FTC charged the company for collecting personal data from children without parental consent.Summary
WASHINGTON—Microsoft will pay $20 million to settle government charges for collecting personal information from children without their parents' consent, officials said Monday.
The Federal Trade Commission alleged that from 2015 to 2020, Microsoft collected personal data from children under 13 who signed up for its Xbox gaming system without their parents' permission and retained this information.
To open an account, users had to provide their first and last names, email addresses, and dates of birth.
The FTC said Microsoft violated a law called the Children's Online Privacy Protection Act, or COPPA.
"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, head 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 added.
The decision still needs a federal court's approval before it can be implemented.
The FTC said Microsoft would be required to take several steps to bolster privacy protections for child users of its Xbox system.
Under the COPPA law, online services and websites aimed at kids under 13 must notify parents about the personal information they collect and obtain verifiable parental consent before collecting and using any personal information collected from children.
Microsoft did not immediately reply to an AFP request for comment.—AFP
Key Points
- Microsoft collected data from children under 13 for Xbox accounts without consent.
- The FTC has mandated stronger privacy protections for child users.
- The settlement requires court approval before implementation.
- Parents must be notified and provide consent for data collection under COPPA.
- Microsoft will improve safeguards for children's information on their platform.
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