Microsoft Corp. has agreed to pay $20 million and follow certain rules to settle a case with the U.S. government over its violations of children’s privacy laws.

The case involved Microsoft’s Xbox Live service, which allows users to play online games through Xbox consoles. The government accused Microsoft of collecting and keeping personal information from children without proper notice and consent from their parents, as required by the Children’s Online Privacy Protection Act (COPPA) and the Children’s Online Privacy Protection Rule (COPPA Rule).

The government said that Microsoft failed to protect children’s privacy and give parents enough information to make informed choices.

U.S. Attorney Nick Brown for the Western District of Washington praised the settlement, saying that it will help parents control their child’s data and ensure Microsoft follows the laws on children’s online privacy. He said that Microsoft admitted to its illegal practices and worked to fix them.

FTC’s Bureau of Consumer Protection Director Samuel Levine said that the order will make Xbox more child-friendly and restrict what Microsoft can do with kids’ information. He also warned that COPPA applies to all kinds of data, including avatars, biometrics, and health.

Leave a Reply