Microsoft agrees to pay $20 million for violation of children’s privacy laws
(KBSI) – Microsoft has agreed to pay $20 million as civil penalty for alleged violation of children’s privacy laws.
The Justice Department along with the Federal Trade Commission announces that the United States has resolved a case against Microsoft Corporation. The complaint filed states Microsoft knew that certain users were children but nonetheless continued to collect personal information such as age, and telephone numbers, before notifying parents.
“It is essential that before collecting children’s personal information, online companies provide complete and timely disclosures about their information collection practices so that parents can make informed decisions,” said Principal Deputy Assistant Attorney General Brian Boynton. “The department and the FTC are committed to ensuring that companies comply with the laws specifically designed to safeguard the privacy of children.”
The settlement requires Microsoft to fully comply with parents about their child’s data and to set up procedures to monitor Microsoft’s compliance with federal statue regarding children’s online policy. Microsoft admitted it illegally retained and collected personal data of children younger than 13 but is now taking steps to fix the problem.
“Our proposed order makes it easier for parents to protect their children’s privacy on Xbox, and limits what information Microsoft can collect and retain about kids,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “This action should also make it abundantly clear that kids’ avatars, biometric data, and health information are not exempt from COPPA.” (Childrens Online Privacy Protection Act.)
The proposed order makes it easier for parents to protect their child’s privacy on Xbox and limits what information can be retained on children, according to the Department of Justice.
