Microsoft will pay $20 million to settle allegations by the US Federal Trade Commission (FTC) that the tech company illegally collected personal information from children without the consent of their parents.
The company was accused of violating the Children’s Online Privacy Protection Act (COPPA) by collecting personal information from children who logged into its gaming system. Xbox without notifying parents or obtaining their consent, and withholding personal information from children, the FTC said in a statement.
“The procedure we propose makes it easier for parents protect your kids’ privacy on xbox and limits the information Microsoft may collect and store about children,” said Samuel Levin, director of the FTC’s Bureau of Consumer Protection.
“This action should also make clear that children’s avatars, biometrics and health information are not exempt from the law.”
As part of a proposed order filed by the Department of Justice on behalf of the FTC, Microsoft must take several steps to strengthen the privacy protections of child users of its system. Xbox.
The order clearly states that avatars created from a picture of a child, as well as biometric and health information, are subject to laws when collected with other personal data. The order must be approved by a federal court before it takes effect.
COPPA requires that online services and websites intended for children under the age of 13 notify parents of the personal information they collect and obtain verifiable parental consent before collecting and using any personal information.
According to the complaint, also filed by the Department of Justice, Microsoft violated the notice, consent, and data retention requirements of the COPPA rule.
Microsoft Xbox gaming products allow users to play games and communicate with other players through their service. Xbox Livebut they must create an account that requires users to provide personal information, including their first and last name, email address, and date of birth.
Even when the user indicated that he was under 13 years old, until the end of 2021, he also had to provide additional personal information, including a phone number, and agree to the Microsoft service agreement and advertising policy, which until 2019 According to the complaint, it was a pre-checked box that allowed Microsoft to send promotional messages and share user data with advertisers.
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
