Microsoft Fined $20 Million Over The Xbox Scandal

After it was discovered that Microsoft had improperly acquired data on kids who had created Xbox accounts, the company accepted the fine of $20 million (£16 million) to be paid to the US federal officials.

Updates So Far

On Monday, the Federal Trade Commission (FTC) and the corporation came to an agreement that includes improved safeguards for young players.

The FTC discovered that Microsoft neglected to educate parents about its data-collecting policy, among other breaches.

According to the FTC, Microsoft violated the Children’s Online Privacy Protection Act by failing to get required parental authorization and holding onto personal information about users under 13 for longer than necessary for accounts created before 2021.

Online businesses and websites that cater to children are required by law to acquire parental approval and to notify the parent when personal information about their kid is being gathered.

The Settlement

Microsoft must also make specific modifications as part of a proposed order submitted by the Department of Justice (DOJ) on behalf of the FTC. These modifications include notifying parents that a separate child account offers more privacy protections, requesting parental permission for child accounts created before 2021, requiring systems to delete data about children to obtain consent for a child’s account, and informing other publishers when it “discloses personal information from children.”

According to The Verge, this is only the most recent FTC settlement with a video game developer over alleged COPPA breaches. Epic Games, the company behind Fortnite, and the FTC negotiated a $520 million settlement in December 2022, $275 million of which was related to COPPA breaches.

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