Microsoft Pays Millions After Xbox Data Theft
6/6/2023, 8:04 p.m
Microsoft diligently collects personal data from minors via its Xbox games console. The corporation is counted for the illegal operation by the Trade Inspectorate. Now Microsoft is paying millions to settle the dispute.
Microsoft has agreed to pay $20 million to settle allegations the US company violated children’s privacy rights when signing up for its Xbox console. This was announced by the US Trade Commission FTC. The regulator had accused Microsoft of violating the Children’s Online Privacy Protection Act (Coppa).
The Group had collected personal information from children under the age of 13 when they signed up for Xbox without informing their parents or obtaining parental consent. Microsoft also improperly stored personal information from children.
As part of the proposed settlement, Microsoft must take several steps to improve the protection of the privacy of Xbox users who are children. Among other things, avatars created from a child’s image and their biometric and health data fall under the “Coppa” protection.
Microsoft said it is “a fundamental commitment to providing all players with a safe and secure experience on our platform” and will “update the account creation process and fix a data storage glitch found in our system.” Microsoft also announced that it will develop the next generation of identity and age verification for all players to ensure an age-appropriate gaming experience.