Child Data Violations: US Fines Microsoft $20 Million

According to officials, Microsoft has been ordered on Wednesday to pay $20 million fine by US Authorities for Child Data Violations.

The Federal Trade Commission (FTC) alleged that between 2015 and 2020, Microsoft gathered personal data from children under the age of 13 who signed up for its Xbox gaming system without proper parental authorization and retained this information.

To create an account, users were required to provide their first and last names, email address, and date of birth. The FTC stated that Microsoft’s actions violated the Children’s Online Privacy Protection Act (COPPA), a law designed to safeguard the online privacy of children.

Samuel Levine, the head of the FTC’s Bureau of Consumer Protection, emphasized that the proposed order would facilitate parents in protecting their children’s privacy on Xbox and restrict the information Microsoft can collect and retain about kids. Levine added that this enforcement action clearly establishes that COPPA regulations apply to various aspects, including kids’ avatars, biometric data, and health information.

Before the settlement can be enforced, it still requires approval from a federal court. As part of the settlement, Microsoft will be obligated to implement several measures to enhance privacy protections for child users of the Xbox system.

As per COPPA regulations, online platforms and websites that cater to children below the age of 13 are obligated to notify parents regarding the collection of personal data and acquire verifiable parental consent before gathering and utilizing such information.

A representative from Microsoft affirmed their unwavering dedication to adhering to the FTC’s directive and expressed their plans to create a fresh identity and age verification system to guarantee age-appropriate experiences for Xbox users.