Microsoft Illegally Collected Children’s Data, Will Pay $20 Million To Settle Charges

On Monday, US Federal Trade Commission(FTC) said, Microsoft will pay $20 million to settle to charges for illegally collecting personal data from children without their parent’s consent.

Microsoft collected data without parent’s consent

According to FTC, the company is booked under charges of violating the US Children’s Online Privacy Protection Act (COPPA) by collecting personal information from children who signed up to its Xbox gaming system without their parents permission. The giant tech also retained children’s personal information as well.

Microsoft should improve privacy protections: FTC

The FTC further mentioned that Microsoft should improve privacy protections for child users of its Xbox system. “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. He further added, “This action should also make it abundantly clear that kids’ avatars, biometric data, and health information are not exempt from COPPA.”

Microsoft retained collected data for 5 years

According to law websites and online services should take consent before collecting and using personal information from children under 13. As per the complaint, Microsoft retained data from 2015-2020 that is collected from children during account creation procees, even when the parent did not complete the process.

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