Microsoft will pay $20 million for violating the Children’s Privacy and to settle US FTC charges framed for collecting illegal data from children without the consent of their parents. The charges are framed under US Children’s Online Privacy Protection Act.

Highlights

• Such an order proposed by COPPA will protect children’s privacy on Xbox
• It will limit the taking of data taken by the Microsoft 
• It will also increase the reach of COPPA’s shadow to third-party gaming publishers

Microsoft has to pay $20 million for the violations of breaking the laws of the US Children’s Online Privacy Protection Act. It will pay this much amount to settle US Federal Trade Commission (FTC) charges which were framed earlier due to the illegal collection of personal information from children without their parent’s consent, as per the saying of FTC on Monday.

The company has been charged with violations of the US Children’s Online Privacy Protection Act (COPPA) by collecting personnel information of the children through a gaming platform Xbox without the consent of their parents.

A spokesperson of the company made a statement that the company was committed to the order. After this order, the company’s account creation process will be modified and the glitch found in the system will be corrected soon.

“Our proposed order makes it easier for parents to protect their children’s privacy on Xbox, and limits what information Microsoft can collect and retain about kids,” the director of the FTC Samuel Levine said.

This law basically makes the requirement for online services and websites directed to children under 13 years of age to notify their parents about giving personal information to such websites. And after taking the consent of their parents’ such websites can take the data of their children.

“This action should also make it abundantly clear that kids’ avatars, biometric data, and health information are not exempt from COPPA,” Added Levine.