Protecting Children’s Privacy: Microsoft Agrees to $20 Million Settlement with US Authorities
San Francisco: Microsoft has agreed to pay a fine of $20 million to settle charges brought by the Federal Trade Commission (FTC) over the illegal collection and retention of children’s data through its Xbox video game console.
The FTC alleged that Microsoft obtained the data without proper parental notification or consent, and further violated the Children’s Online Privacy Protection Act by unlawfully retaining the collected information.
In response to the settlement, Dave McCarthy, Corporate Vice President for Xbox at Microsoft, outlined the company’s commitment to enhancing age verification systems and involving parents in the creation of child accounts. The focus will be on improving age verification technology and educating both children and parents about privacy concerns.
McCarthy also acknowledged and addressed a technical glitch that prevented the deletion of child accounts when the account creation process was not completed. Microsoft has rectified the issue, ensuring that data is retained for no longer than 14 days to allow interrupted account creation to resume seamlessly.
The settlement underscores Microsoft’s dedication to safeguarding children’s privacy and reinforces its commitment to implementing robust measures to protect user data and comply with applicable regulations.
