COMPANY SETTLES DATA RETENTION GLITCH CASE WITH AGREEMENT
Microsoft has reached a settlement with the US Federal Trade Commission (FTC), agreeing to pay a fine of $20 million. The settlement comes in response to allegations of Microsoft illegally collecting personal information from children on Xbox consoles without obtaining parental consent.
The FTC stated that the sign-up process on Xbox violated the Children’s Online Privacy Protection Act by gathering children’s personal data without properly informing parents or obtaining their permission. In addition, Microsoft was accused of retaining children’s personal information unlawfully, which the company acknowledged as a “technical glitch.”
As part of the settlement, Microsoft will not only pay the penalty but also implement measures to ensure compliance with children’s privacy laws in the future. The settlement highlights the importance of protecting children’s online privacy and serves as a reminder to companies to obtain appropriate consent when collecting personal information, especially from young users.
