(MENAFN) In a recent development, Microsoft has agreed to pay USD20 million to settle allegations made by the Federal Trade Commission (FTC) regarding the collection of personal information from children without their parents' consent. According to the FTC, between 2015 and 2020, Microsoft obtained personal data from children under the age of 13 who signed up for its Xbox gaming system without proper parental authorization, and subsequently retained this information. The company required users to provide their first and last names, email addresses, and dates of birth in order to create an account.
The FTC asserted that Microsoft's actions violated the Children's Online Privacy Protection Act (COPPA), a law designed to safeguard children's privacy online. As a result of the settlement, Microsoft will be required to make changes to enhance privacy protections for child users of its Xbox system. Samuel Levine, the head of the FTC's Bureau of Consumer Protection, emphasized that the proposed order aims to facilitate better privacy safeguards for parents, limiting the type of information Microsoft can collect and store regarding children.
Levine further highlighted that the settlement emphasizes that children's avatars, biometric data, and health information are not exempt from COPPA's requirements. The agreement is still pending approval from a federal court before it can be implemented. Once approved, Microsoft will need to take several measures to strengthen privacy protections for child users of the Xbox system.
The settlement serves as a reminder of the importance of obtaining proper parental consent and adhering to privacy regulations when collecting personal information from children. By settling the charges and implementing enhanced privacy measures, Microsoft aims to demonstrate its commitment to protecting the privacy of its young users and complying with applicable laws and regulations.
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