The United States Federal Trade Commission (FTC) has proposed a fine against Microsoft for collecting data from minors without their parental consent. The authority believes that the company has violated the Children’s Online Privacy Protection Act (known as ‘COPPA’ for its abbreviation in English) in Xbox game services.
In a press release published by the FTC, it has been reported that by the end of 2021 parental permission will not be requested when creating an Xbox account for children under 13. Nevertheless, the minor user was asked to provide personal data and to voluntarily acknowledge whether or not they wished to receive commercial information from Microsoft. That information may be shared with other users or third parties, and remains in the Company’s possession even when the account is not fully set up.
The order will also extend COPPA to cover third-party gaming publishers with whom Microsoft shares children’s data. /3
— FTC (@FTC) June 5, 2023
Microsoft will have to pay a fine and make changes to its security
Now the company must pay a $20 million fine and take action to ensure the safety of children on its online systems. Xbox Series X/S, Xbox One and PC. You will need to inform parents about the added security benefits of creating a separate child account for children under 13, and also obtain permission from the parents of children who have already signed up for the changes. The data has been provided to the company.
On the other hand, the FTC would also force Microsoft to delete information on users under the age of 13 if more than two weeks have passed without the account being verified by a responsible adult. You will also need to notify third parties so that they know the user is a child and make the necessary security settings in their applications.