Microsoft to Pay $20 Million for Illegal Data Collection on Children with Xbox Accounts

Microsoft has agreed to pay $20 million to US federal regulators as part of a settlement regarding the illegal collection of data on children who created Xbox accounts. The Federal Trade Commission (FTC) found that Microsoft failed to inform parents about its data collection policies and violated the Children’s Online Privacy Protection Act by not obtaining proper parental consent and retaining personal data on children under 13 for longer than necessary. As part of the settlement, Microsoft will implement increased protections for child gamers and delete personal data after two weeks if no parental consent is obtained. 

Key points: 

1. Microsoft will pay $20 million to US federal regulators in a settlement over the illegal collection of data on children who created Xbox accounts.

2. The company violated the Children’s Online Privacy Protection Act by not obtaining proper parental consent and retaining personal data on children under 13 for longer than necessary.
3. Microsoft failed to inform parents about its data collection practices, including the distribution of user data to third parties.
4. The settlement includes increased protections for child gamers and the implementation of a system to delete personal data after two weeks without parental consent.

5. This settlement follows a similar action taken against Amazon for retaining sensitive data, including voice recordings of children, and Ring’s unauthorized access to customers’ data.

Read more at: https://www.bbc.com/news/world-us-canada-65817558?