The Federal Trade Commission (FTC) announced today that Microsoft has agreed to pay $20 million to settle charges that it violated the Children's Online Privacy Protection Act (COPPA) by collecting personal information from children without parental consent.
The FTC alleged that Microsoft collected personal information from children under the age of 13 who signed up for Xbox Live, the company's online gaming service. The information collected included the child's name, email address, date of birth, and home address. Microsoft also collected information about the child's gaming habits, such as the games they played and the time they spent playing.
The FTC alleged that Microsoft violated COPPA by collecting this information without first obtaining parental consent. COPPA requires websites and online services that collect personal information from children under the age of 13 to obtain parental consent before collecting the information.
As part of the settlement, Microsoft agreed to pay $20 million to the FTC. Microsoft also agreed to implement a number of measures to protect the privacy of children, including:
- Obtaining parental consent before collecting personal information from children under the age of 13.
- Providing parents with the opportunity to review and delete their child's personal information.
- Not using personal information collected from children for advertising purposes.
"Microsoft's failure to protect the privacy of children was unacceptable," said FTC Chairman Joseph Simons. "This settlement will ensure that Microsoft takes steps to protect the privacy of children and stop collecting their personal information without parental consent."
The FTC's action against Microsoft is part of the agency's ongoing effort to protect the privacy of children online. The FTC has brought a number of enforcement actions against companies that have violated COPPA, including YouTube, Nickelodeon, and VTech.
The FTC's website has more information about COPPA and the steps that parents can take to protect their children's privacy online.