The US Federal Trade Commission said Microsoft will pay $20 million to settle charges brought by the commission that the tech giant illegally collected personal information from children without their parents’ consent.
The committee said in a statement on Monday that the company is accused of violating the Children’s Online Privacy Protection Act by collecting personal information from children participating in the Xbox game system without notifying parents or obtaining their consent, while keeping the children’s personal information, reports Al-Rai daily quoting Reuters.
The committee’s order requires Microsoft to take steps to improve privacy protections for children’s Xbox users. The commission said it would extend the scope of the Children’s Online Privacy Protection Act to all game publishers with whom Microsoft shares children’s data.
A Microsoft spokesperson said the company is committed to complying with the decision.
He added that the procedures for creating the account will be modified, and a technical problem that has been discovered that leads to the system retaining data will be resolved.
The law requires online service providers and websites aimed at children under 13 to notify parents of any personal information they collect and obtain verifiable parental consent before collecting and using children’s personal data.
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