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Microsoft To Pay $20 Million For Illegally Collecting Children’s Info

Microsoft will pay $20 million to settle FTC charges that the company illegally collected personal information from children without their parent’s permission.

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Why In The News?

  • Microsoft Will Pay $20 Million To Settle U.S. Federal Trade Commission (FTC) Charges That The Tech Company Illegally Collected Personal Information From Children Without Their Parents’ Consent.

What Do We Know?

  • The Company Had Been Charged With Violating The U.S. Children’s Online Privacy Protection Act (COPPA) By Collecting Personal Information From Children Who Signed Up To Its Xbox Gaming System Without Notifying Their Parents Or Obtaining Their Parents’ Consent, And By Retaining Children’s Personal Information.
  • The Order Requires Microsoft To Take Steps To Improve Privacy Protections For Child Users Of Its Xbox System. It Will Extend COPPA Protections To Third-Party Gaming Publishers With Whom Microsoft Shares Children’s Data.
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What Was Microsoft’s Response?

  • The Company Was Committed To Complying With The Order. The Account Creation Process Will Be Updated And A Data Retention Glitch Found In The Company’s System Will Be Resolved.

U.S. Children’s Online Privacy Protection Act (COPPA):

  • The Law Requires Online Services And Websites Directed To Children Under 13 To Notify Parents About The Personal Information They Collect And To Obtain Verifiable Parental Consent Before Collecting And Using Any Personal Information Of The Children.
  • From 2015 To 2020, Microsoft Retained The Data That It Collected From Children During The Account Creation Process, Even When A Parent Failed To Complete The Process, According To The Complaint.

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