FTC Announces Settlement in Microsoft COPPA Violations

Company to pay $20 million and strengthen privacy for minors on Xbox platform.

The Federal Trade Commission (FTC) has stated that Microsoft will pay a $20 million settlement for violating the Children’s Online Privacy Protection Act (COPPA). The company collected personal information from children without parental notification or consent and also retained that information unlawfully.

Microsoft has been ordered to increase privacy safeguards for child users of its Xbox system, extending COPPA regulations to third-party gaming publishers who receive children’s data. The order also states that Microsoft must inform parents about additional privacy protections if they create separate accounts for their children and obtain parental consent for accounts created before May 2021.

“Our proposed order makes it easier for parents to protect their children’s privacy on Xbox, and limits what information Microsoft can collect and retain about kids,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “This action should also make it abundantly clear that kids’ avatars, biometric data, and health information are not exempt from COPPA.”

As the Lord Leads, Pray with Us…

  • For wisdom for Director Levine as he oversees efforts to protect American consumers.
  • For members of the FTC as they seek to hold U.S. businesses accountable for privacy violations.
  • For American parents to be aware and involved in safeguarding their children’s privacy.

Sources: Federal Trade Commission


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