The U.S. Federal Trade Commission (FTC) has ordered Microsoft to pay $20M for illegally collecting data from children holding Xbox accounts. The FTC alleges that the software giant's practices violate the Children's Online Privacy Protection Act (COPPA). - The COPPA requires companies to obtain parental consent to collect data from children under 13.
- The
FTC found that Microsoft collected personal information from children
under 13 before notifying their parents, failed to specify the
information it collected from kids, and retained children's information
"for longer than is reasonably necessary."
- A statement from the FTC reveals that the information collected included kids' names, email addresses, and phone numbers.
- COPPA's definition of "personal information" also covers avatars, biometrics, vital signs, and health data.
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