Microsoft was fined millions of dollars. This is the decision of the regulators. US authorities believe that the company did not sufficiently protect the data of minors collected on Xbox services.
The US Federal Trade Commission (FTC) imposed a huge fine on Microsoft. The US regulator has decided to impose a fine of $20 million in connection with the violation of rules regarding the safety of minors online.
FTC fines Microsoft $20 million
This is a violation of the Children’s Online Privacy Protection Act (COPPA). The law regulates, among other things, how companies can collect data on minors.
The commission found that Microsoft broke the law by allowing children to create Xbox accounts without first asking for parental consent. Collection and storage of data without the consent of the guardians is strictly prohibited by COPPA.
The FTC determines the time of violation of the provisions of the Law for 2015-2020. Until 2019, the company sent advertisements to minors in the opt-out system, and by the end of 2021, children were also asked to provide a phone number to create an account.
Microsoft decided to negotiate with the regulator. In addition to paying the fine, the corporation has committed to improving its procedures and strengthening the protection of user privacy, with particular attention to minors using Xbox services.
The changes concern, for example. The process of setting up an Xbox account and troubleshooting technical issues with a company’s IT system that caused user data to be stored for too long.
Americans take on gaming companies - a series of FTC fines
Microsoft is not the only company that has recently been investigated by the US Commission. The $20 million fine is nothing compared to the massive fine awarded by Epic Games. At the end of last year, the company had to pay as much as 275 million dollars, including for violations of COPPA provisions.
Just a few days ago, the FTC fined Amazon. This time the amount was 25 million dollars. The punishment is related to the violation of the privacy of minors by storing recordings of their voices as part of the Alexa voice assistant system.
Source: Wprost
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