Microsoft Illegally Collected Children’s Personal Data

The Federal Trade Commission (FTC) fined Microsoft $20 million for breaking standards governing children’s online privacy.

It was discovered that the company acquired personal information from children under the age of 13 without their consent. The FTC inquiry discovered that Microsoft improperly collected information such as names, email addresses, dates of birth, gamertags, gamer scores, and Xbox Live activity histories.

Microsoft used the personal data it obtained to follow children’s gaming habits, target advertising, and sell to third-party companies. In reaction to the incident, Microsoft will be obliged to strengthen privacy safeguards, particularly for youngsters who use the Xbox platform.

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The ruling will also broaden the scope of Children’s Online Privacy Protection Act (COPPA) provisions to include third-party gaming publishers who receive children’s data from Microsoft.

The software vendor attributes the problem on a software flaw that they seemingly overlooked. Microsoft has resolved a technical issue in which “our systems did not delete account creation data for child accounts where the account creation process was initiated but not completed.”

Here is Microsoft’s official statement:

Regrettably, we did not match customer expectations, but we are committed to following the order and continuing to improve our safety standards. We believe we can and should do more, and we will remain unwavering in our commitment to our community’s safety, privacy, and security.