Microsoft, the world’s largest software company, agreed to pay a $20 million fine to resolve charges that it acquired personal information from children without their parents’ permission.
According to the U.S. Federal Trade Commission (FTC), Microsoft allegedly acquired personal data from children who registered for their Xbox gaming system without informing or getting their parents’ permission.
It claimed that Microsoft had improperly held onto the personal data of the kids.
The Children’s Online Privacy Protection Act (COPPA), according to the FTC, was breached by Microsoft’s conduct.
Along with paying a fine, the tech corporation must strengthen privacy safeguards for young Xbox users.
The FTC declared that it will also expand COPPA safeguards to independent game developers with whom Microsoft exchanges kid users’ information.
According to Samuel Levine, the Director of the FTC’s Bureau of Consumer Protection, “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.
“This action should also make it abundantly clear that kids’ avatars, biometric data, and health information are not exempt from COPPA.”
Before it can be implemented, the order must be granted by a federal court.
cc: PM News
