Microsoft cops $20M slap on the wrist for mishandling kids' Xbox data
the company to update its account creation process for children to prevent collection and storage of data, and extend those responsibilities to third-party publishers that Microsoft shares such data with.
"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," said FTC Bureau of Consumer Protection director Samuel Levine. The order will now be sent to a federal court for review and approval.
Creating an Xbox account requires potential players to provide their first and last names, an email address, and a birth date. Phone numbers were also requested, even from those who indicated they were under 13, and until 2019 the sign up form"included a pre-checked box allowing Microsoft to send promotional messages and to share user data with advertisers," the FTC said.
Xbox users trying to create an account weren't asked to involve a parent until after Microsoft collected all of that personally identifiable information. To make matters worse, the FTC alleged Microsoft didn't follow COPPA rules prohibiting the storage of that information"for longer than is reasonably necessary to fulfill the purpose for which it was collected" when it failed to delete stored data if a parent didn't finish the account creation process.
For children who did complete the process, Microsoft combined their gamertag and avatar into a unique persistent identifier that it could share with third parties, again in violation of COPPA. Microsoft also failed to comply with notice provisions in COPPA that required it to disclose to parents that such information was collected.
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