Microsoft to pay $20M to settle charges of misusing children's data

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Microsoft to pay $20M to settle charges of misusing children's data
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The FTC accused Microsoft of collecting data on children who signed up for Xbox accounts without notifying parents or obtaining their consent.

Microsoft has been ordered to pay $20 million to settle U.S. charges that the company illegally collected personal information of children.

"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 Samuel Levine, Director 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.

"We want all parents, caregivers, and families to know that, more than anything else, we have their children’s safety and privacy top of mind," McCarthy wrote."We will continue to communicate the changes we are making to our practices and the data we collect so we can better protect children using our platform. We also continue to explore creative ways to educate players about online safety.

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