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Microsoft to pay $20 million FTC settlement over improperly storing Xbox account data for kids

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Microsoft is about to pay the Federal Commerce Fee (FTC) a $20 million settlement over fees that the corporate violated the Youngsters’s On-line Privateness Safety Act (COPPA). The corporate retained sure private info of youngsters far longer than it ought to have once they made accounts, according to a press release.

Microsoft may also need to make some modifications as a part of a proposed order filed by the Division of Justice (DOJ) on behalf of the FTC. These modifications embody telling mother and father {that a} separate little one account comes with extra privateness protections, requiring mother and father to provide consent for little one accounts made earlier than 2021, making methods to delete information about essential to get parental consent for a youngsters’ account, and telling different publishers when it “discloses private info from kids that the person is a baby,” the press launch says.

That is simply the newest FTC settlement with a online game firm over alleged violations of COPPA. In December 2022, Fortnite developer Epic Video games reached a $520 million settlement with the FTC, with $275 million of that over the COPPA violations. Earlier that month, Epic launched for-kids accounts for Fortnite, Rocket League, and Fall Guys.

On Monday, the FTC stated that till late 2021, when a person created a Microsoft account, the corporate requested for sure private info earlier than asking a father or mother of an under-13 participant to become involved in making the account. However the FTC alleges that Microsoft retained that private information “generally for years” even when the father or mother didn’t end the signup course of, which is one thing that’s prohibited by COPPA.

“Regrettably, we didn’t meet buyer expectations and are dedicated to complying with the order to proceed enhancing upon our security measures,” Microsoft’s Dave McCarthy, CVP of Xbox Participant Companies, wrote in an Xbox blog post. “We consider that we are able to and will do extra, and we’ll stay steadfast in our dedication to security, privateness, and safety for our neighborhood.”

Within the put up, McCarthy says that Microsoft wasn’t deleting account creation information for little one accounts because of a “technical glitch,” and that the corporate has since mounted the glitch and deleted the info. “The info was by no means used, shared, or monetized,” in accordance with McCarthy.

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