Microsoft to Pay $20 Million for Violating Children's Online Privacy Protection Act

Microsoft will pay $20 million to settle charges by the U.S. Federal Trade Commission (FTC) that the company illegally collected personal information from children without their parents' consent.

The company violated the Children's Online Privacy Protection Act (COPPA) by collecting personal information from children who signed up to its Xbox gaming system without notifying their parents or obtaining their parents' consent, and by retaining children's personal information.

Microsoft has agreed to take steps to improve privacy protections for child users of its Xbox system and to extend COPPA protections to third-party gaming publishers with whom it shares children's data.