Microsoft To Pay $20 Million For Violating Xbox Kids Privacy

Microsoft gives way in a standoff with authorities, agreeing to improve privacy protections for minors on its Xbox platform. The company is also paying $20 million to settle the case.

The FTC accused the company of illegally collecting personal information from children without their parent’s consent. Parents and guardians were also not informed. This is a violation of the Children’s Online Privacy Protection Act (COPPA) in the United States. An

agreement was reached between the agency and Microsoft. The Redmond company is committed to improving the protection of children’s privacy using the Xbox system. According to the FTC, COPPA protections will also be extended to third-party games that Microsoft shares children’s data. This was reported by the Reuters news.

The registration process will be changed

A Microsoft spokesman said the company is prepared to comply with FTC orders. He added that the account creation process will be updated and a data storage bug found in the company’s system will be fixed. “Our proposed arrangement makes it easier for parents to protect their children’s privacy on Xbox and limits what information Microsoft can collect and store about children,” said Samuel Levine, director of the FTC’s Consumer Protection Bureau.

The underlying law requires online services and websites aimed at children under the age of 13 to inform parents of the personal data they collect and obtain verifiable consent before storing and processing the children’s personal data.