Microsoft fined $20 million for unlawfully collecting minor’s data… details

The US Federal Trade Commission (FTC) announced that Microsoft will be required to pay US$20 million to settle charges of violating the Child Privacy Online Act by illegally collecting personal information without the consent of their parents.

The Federal Trade Commission said in a statement published on Monday that it accuses Microsoft of having collected, from 2015 to 2020, personal data of children and adolescents under the age of 13 who are registered on the online gaming platform of the Xbox console, without informing parents, and retaining them.

In order to create an account, the user must provide a name, nickname, email address, and date of birth.
The Federal Trade Commission noted that Microsoft had “broken the law” on protecting children’s privacy online.
The statement quoted committee chairman Samuel Levine as saying: “The resolution we are proposing allows parents to protect the privacy of their children’s data on Xbox, and limits the information that Microsoft can collect on minors and keep.”

“This action will also make it clear that symbolic photographs, biometric data and information on children’s health are not exempt” from the Minors’ Privacy Act, he added.
The decision is supposed to be approved by a federal court and take effect.

“Microsoft will need to take many actions to enhance the privacy protection of children using its Xbox,” the Federal Trade Commission said in a statement.
Under the Child Privacy Online Protection Act, online services and websites for children under the age of 13 are required to inform parents of personal information they collect and obtain parental consent.

A Microsoft spokesman told AFP: Xbox will “comply with the order of the agency” and will develop a new identity and age verification process to offer age-appropriate experiences.