In September 2020, the Federal Trade Commission (FTC) announced that Microsoft, the parent company of Xbox, had agreed to pay a $20 million fine for illegally collecting personal information from children without their parents’ consent. This is the largest civil penalty ever imposed by the FTC under the Children’s Online Privacy Protection Act (COPPA).
The COPPA is a federal law that requires websites and online services to obtain parental consent before collecting personal information from children under the age of 13. The law was enacted in 1998 to protect children’s privacy online and prevent companies from using their personal information for marketing purposes.
According to the FTC’s complaint, Xbox violated COPPA by collecting personal information from children without obtaining parental consent. The company allegedly collected children’s names, email addresses, and other personal information through its registration process and through online surveys and contests.
The FTC also alleged that Xbox allowed children to create and share their own game clips and screenshots, which could contain personal information such as their gamertags and profile pictures. Xbox allegedly failed to provide adequate notice to parents about its data collection practices and did not obtain verifiable parental consent before collecting children’s personal information.
In addition to the $20 million fine, Xbox agreed to implement a comprehensive privacy program to comply with COPPA and obtain parental consent before collecting children’s personal information. The company also agreed to delete all personal information collected from children without parental consent.
The FTC’s action against Xbox serves as a reminder to all companies that collect personal information from children to comply with COPPA and obtain parental consent before collecting any data. Parents should also be aware of their children’s online activities and monitor their use of websites and online services.
In conclusion, the illegal collection of children’s data is a serious issue that can have long-lasting consequences for children’s privacy and safety. The FTC’s action against Xbox sends a strong message to all companies that collect personal information from children to comply with COPPA and protect children’s privacy online. Parents should also take an active role in monitoring their children’s online activities and educating them about online privacy and safety.
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- Source: Plato Data Intelligence.