Microsoft Agrees to Pay 165 Crore Over Alleged Collection of Children’s Personal Data
Microsoft has agreed to pay nearly 165 crore to settle allegations that it collected children’s personal data without parental consent and violated online privacy rules in the United States.
Microsoft Moves to Resolve Privacy Case
Washington: Microsoft has agreed to pay 20 million dollars, approximately Rs 165 crore, to resolve allegations that it illegally collected children’s personal data without obtaining parental consent. The settlement follows claims made by the United States Federal Trade Commission that the company violated federal child privacy regulations.
The complaint is linked to Microsoft’s Xbox gaming platform, where children were allegedly able to create accounts while their personal information was collected before verified permission was received from their parents.
FTC Alleges Violation of Child Privacy Law
According to the Federal Trade Commission, Microsoft failed to comply with the requirements of the Children’s Online Privacy Protection Act, commonly known as COPPA. The law requires online services and websites directed at children under the age of 13 to inform parents about the information being collected and obtain verified parental consent before gathering personal data.
The regulator also alleged that Microsoft retained personal information collected from children during the account creation process even when parents did not complete the required consent procedure.
Changes Required for Xbox Privacy Practices
As part of the settlement, Microsoft is expected to strengthen privacy protections for child users of its Xbox platform. The FTC said the measures will also extend COPPA safeguards to third party gaming publishers that receive children’s data through the Xbox ecosystem.
The agency believes these changes will improve the way children’s personal information is handled and ensure stronger compliance with federal privacy standards.
Focus on Safer Digital Services
The complaint further stated that the alleged practices occurred between 2015 and 2020, when children’s information was reportedly stored despite parental consent not being completed. The case highlights growing regulatory attention on how technology companies collect, store and share the personal information of young users while emphasizing the need for stronger digital privacy protections for children.
