Staff Writer
On Monday, the Federal Trade Commission (FTC) and the business came to an agreement that includes improved safeguards for young players.
The FTC discovered that Microsoft neglected to educate parents about its data collecting policy, among other breaches.
It comes after a comparable move against Amazon last week regarding its Echo gadgets.
By failing to properly get parental consent and keeping personal information on children under 13 for longer than necessary for accounts created before 2021, according to the FTC, Microsoft violated the Children’s Online Privacy Protection Act.
Online businesses and websites that cater to children are required by law to acquire parental approval and to notify the parent when personal information about their child is being gathered.
To use several services on Xbox, customers must first register an account. As part of the setup, details like a person’s full name, email address, and birthdate are gathered.
Microsoft didn’t request parental consent until after getting sensitive data, such a child’s phone number.
Microsoft held onto account setup data from 2015 to 2020, even when a parent didn’t finish the procedure, the FTC claimed in a statement.
Additionally, the corporation neglected to tell parents about the information it was gathering, including the user’s profile photo and how it would be shared with outside parties.
Unfortunately, we fell short of customer standards, but we’re committed to following the directive to keep enhancing our safety procedures. In a blog post on the Xbox website, Microsoft’s Dave McCarthy, CVP of Xbox Player Services, wrote.
We will continue to be unwavering in our commitment to the safety, privacy, and security of our community because we think we can and should do more.
Microsoft must implement new kid safety safeguards as part of the deal. That includes keeping a system in place that, in the absence of parental agreement, deletes all personal data after two weeks.
Before the order can take effect, a federal judge must approve it.
After the FTC discovered that Amazon had kept sensitive data, including child voice recordings, for years, it last week agreed to pay $25m.
Ring, an Amazon doorbell camera product, also agreed to pay $5.8 million after giving staff members unrestricted access to consumer information.
