Microsoft agreed to pay a $20 million civil penalty to settle children’s privacy transgressions alleged by the Federal Trade Commission, the Justice Department announced Monday.
The purported violations were connected to the Xbox Live accounts of children. Xbox Live is the online multiplayer and digital media platform owned by Microsoft, available for use on the company’s Xbox game consoles as well as PCs.
In addition, Microsoft is accused of retaining information of child users who started to create an account but did not finish the process. That retention was longer than is permitted by the Children’s Online Privacy Protection Act. If Microsoft shares the information of juvenile users with other companies, those companies will have to be informed that the information comes from a child.
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