Microsoft Fined $20M for Violating Children's Privacy with Xbox
By RAHUL BHAGAT
JUNE, 2023
Microsoft has agreed to pay a $20 million fine to settle charges by the Federal Trade Commission (FTC) that it violated children's privacy laws.
The company illegally collected and stored personal information from children without obtaining parental consent through its Xbox gaming system.
The FTC's investigation found that Microsoft's actions violated the US Children's Online Privacy Protection Act (COPPA).
The settlement requires Microsoft to enhance privacy protections for child users of the Xbox system and restrict the collection and retention of children's data.
Third-party game publishers that share children's data with Microsoft are also subject to the order.
Microsoft is committed to complying with the FTC's order and plans to develop improved identity and age verification processes for a safer user experience.