Microsoft to pay $20 million to FTC for illegally collecting kids’ data on Xbox

Microsoft has agreed to pay a fine of $20 million and limit the amount of data it can collect about kids using its Xbox console.

The U.S. Federal Trade Commission (FTC) charges that the company illegally collected and retained the data of children who signed up to use its Xbox video game console without their parents’ knowledge or consent.

The company also blamed some of the issues to a technical glitch that failed to delete account creation data for child accounts where the account creation process was started but not completed, emphasizing that the data was promptly deleted and never used, shared, or monetized.

In court, the FTC argues that kids’ avatars, biometric data, and health information are not exempt from COPPA.

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