Microsoft to pay $20 million in FTC fines over improper storage of Xbox kid account information

Microsoft has agreed to pay a $20 million settlement to the Federal Trade Commission.

FTC) due to allegations of violation of the Protection ActChildren's Online Privacy Protection Act (COPPA). According to official information, the company kept children's personal information longer than intended when they created their accounts.

In addition to compensation, Microsoft also committed tomake changes as part of the proposed order, which is submitted by the Department of Justice (DOJ) on behalf of the FTC. These changes include a notice to parents that a separate account for children provides an additional layer of privacy, the need to obtain parental consent for child accounts created prior to 2021, the development of a system to remove the data required for parental consent to children's accounts. , as well as alerting other publishers to the disclosure of personal information of children, confirming their child when using the services.

The agreement with the FTC was the lasta video game company has concluded regarding possible violations of COPPA. In December 2022, Fortnite developer Epic Games entered into a $520 million deal with the FTC, of ​​which $275 million is related to COPPA violations. Earlier in the month, Epic introduced child accounts for its games Fortnite, Rocket League, and Fall Guys.