Microsoft Fined $20 Million for Illegally Collecting Children’s Information on Xbox – What You Need to Know

2023-06-06 06:49:00

US Federal Trade Commission (FTC) reported that Microsoft was fined $20 million for illegally collecting information from children’s accounts Xbox.

We are talking regarding the process of creating accounts, which until 2021 allowed the child to provide a certain amount of personal information without parental permission.

reportedthat Microsoft continued to store this data for a long time, even if the accounts were not eventually created. This, in turn, is a violation of the Children’s Online Privacy Protection Act (COPPA).

Microsoft already reacted on the situation, justifying the violation with a “data storage failure”. The company has already fixed this failure, deleted the data and implemented methods to prevent the error from happening once more. Microsoft assured that data from children’s accounts “was not used, transferred or monetized.” The company will continue to improve its security measures further.

Recall a similar situation that occurred last year. Then the FTC ordered Epic Games to pay $520 million in two lawsuits, one of which was specifically related to the privacy of children.

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