Xbox Fined $20M By FTC After Illegal Collection Of Children’s Data

Expert Verified By

$20 Million Fine For Xbox!

The Federal Trade Commission (FTC), responsible for protecting consumer data in the United States, has fined Xbox a hefty $20 million charge for illegally storing children’s personal information on its platform without parents’ consent.

According to the Children’s Online Privacy Protection(COPPA) rule, websites and services require parental consent prior to the collection of personal information from kids. However, Xbox failed to follow this rule.

Why It Matters: With the rise of modern technologies, data protection is a concerning matter. The fact that such a sizable company has been storing the personal data of children without parental consent is also very concerning.

Xbox Series X|S Japan

The data included biometric information, phone numbers, and avatars generated from children’s images. According to the FTC, Microsoft retained this data for years, even if the signup process was incomplete, which is a violation of COPPA.

As a result, Microsoft will now be mandated to implement several measures to enhance privacy protection for children. Additionally, the COPPA order will now be extended to third-party gaming publishers.

Samuel Levine from the FTC commented:

“Our proposed Order limits what information Microsoft can collect and retain about kids”

Microsoft has now responded to the ruling by FTC on their official site, claiming that the violation of COPPA was a glitch and that the company will improve moving forward. Dave McCarthy, CVP of Xbox Player Services, stated that the company has addressed the glitch, and the data was never shared or used.

Similarly, Epic Games, the creators of Fortnite, were also fined $550 Million last year for violating the COPPA rule, among other charges by the FTC.

Was our article helpful? 👨‍💻

Thank you! Please share your positive feedback. 🔋

How could we improve this post? Please Help us. 😔

Gear Up For Latest News

Get exclusive gaming & tech news before it drops. Sign up today!

Join Our Community

Still having issues? Join the Tech4Gamers Forum for expert help and community support!

Latest News

Join Our Community

104,000FansLike
32,122FollowersFollow

Trending

Nvidia New Neural Rendering Tech Cuts VRAM Usage By Up To 85%

Nvidia has showcased its new neural rendering tech, which was demonstrated to cut VRAM usage from 6.5GB to just 970MB.

State of Decay 3 to be Darker and More Serious, Ditches Goofy Elements of Previous Game

The head of Undead Labs, Philip Holt, reveals that State of Decay 3 is shaping up to have a more serious but hopeful tone than the last title.

New Alien Game Not Impacted By Eidos Montreal Layoffs, Still In Development Claims Insider

While speaking on the Insider Gaming podcast, Tom Henderson stated that the Alien game from Eidos Montreal is still in development.

Crimson Desert Is Still The Best-Selling Title On Steam Two Weeks After Launching

According to the Steam global top sellers ranking, Crimson Desert is the best-selling title on the platform over two weeks after launching.

Good News For Gamers: Steam Deck 2 Expected To Arrive In 2028

According to the latest information provided by a reliable leaker Kepler_L2, Valve wants to release Steam Deck 2 in 2028 launch window.