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.

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The company illegally collected and stored personal information from children without obtaining parental consent through its Xbox gaming system.

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The FTC's investigation found that Microsoft's actions violated the US Children's Online Privacy Protection Act (COPPA).

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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.

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Third-party game publishers that share children's data with Microsoft are also subject to the order.

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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.