Microsoft Fined $20M For Xbox Child Data Collection

The FTC has demanded additional data privacy protections for kids using Xbox gaming systems, extending COPPA protections.

Microsoft has reached a $20 million settlement with the Federal Trade Commission (FTC) for violating the Childrens Online Privacy Protection Act (COPPA), by gathering, without parental consent, data on children using its Xbox gaming system.
COPPA rules
state that sites aimed at children under 13 must notify parents and obtain consent before collecting any personal data, and that even with parental consent, storage of any data on a minor cant be stored longer than is reasonably necessary, according to the FTC. The FTC said it found
Microsoft
retained childrens data from 2015-2020, often collected from Xbox accounts without parents permission.
The FTC has proposed an order in coordination with the Department of Justice asking that in addition to the fine, Microsoft must extend COPPA protections to third-party game publishers in the Xbox ecosystem, the FTC added. Regulators also specifically outlined that a childs image, biometric and health information captured by Xbox are likewise covered by COPPA rules.
Our proposed order makes it easier for parents to protect their childrens privacy on Xbox, and limits what information Microsoft can collect and retain about kids, Samuel Levine, Director of the FTCs Bureau of Consumer Protection said in the
Microsoft fine announcement
. This action should also make it abundantly clear that kids avatars, biometric data, and health information are not exempt from COPPA.

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Microsoft Fined $20M For Xbox Child Data Collection