Editorial exploration: Examining the consequences of Microsoft’s illegal data collection and the implications for children’s online privacy. Title: Microsoft Settles with US for $20M Over Illegal Collection of Children’s Data

Microsoft Settles with FTC, Pays $20M for Illegally Collecting Children’s Data

Microsoft has agreed to pay a fine of $20 million as a settlement with the US Federal Trade Commission (FTC) for unlawfully collecting and retaining data from children who signed up to use its Xbox video game console. The regulator had alleged that Microsoft obtained the data without informing parents or obtaining their consent and kept it illegally, violating the Children’s Online Privacy Protection Act.

The Implications of the Settlement

This settlement sends a strong message to companies that violate children’s online privacy rights. This case highlights the critical importance of following the Children’s Online Privacy Protection Act, which provides guidelines and limitations on the collection and use of children’s data. FTC Chair Lina Khan noted that “This settlement ensures that Microsoft will implement substantial changes to how it collects and retains data about children enrolled in its gaming services, including by enhancing the company’s consent mechanisms, undertaking robust age-screening protocols, exploiting the technology and tools to better detect and respond to signs of interference with children, and maintaining a comprehensive privacy program.”

Microsoft‘s Response

Dave McCarthy, the Corporate Vice President for Xbox at Microsoft, outlined additional steps that the company will take to improve its age verification systems and ensure parental involvement in the creation of child accounts for the service in a blog post. The efforts will focus on improving age verification technology and educating children and parents about privacy issues. McCarthy also stated that the company identified and fixed a technical glitch that failed to delete child accounts in cases where the account creation process never finished. Additionally, Microsoft‘s policy was to keep children’s data no longer than 14 days to enable gamers to continue their account creation process if they were interrupted.

Consequences for Future Cases

This settlement may set a precedent instructing companies to comply with online privacy laws, such as the Children’s Online Privacy Protection Act, and reinforce FTC’s commitment to protecting the privacy of children’s online activities. It may also encourage other regulators globally to pursue similar action against companies that violate privacy laws.

Editorial and Advice

The privacy violations identified by the FTC cannot be taken lightly, as they threaten the online safety and security of children. The settlement highlights the importance of companies strictly adhering to online privacy regulations and adopting adequate safeguards to protect user data. Businesses must ensure that they are entirely transparent in their data collection practices, obtain parental consent when collecting information on minors and do not store data beyond a reasonable period. Parents, on their part, have a responsibility to monitor their children’s online activities and ensure that their privacy remains safeguarded. By following these necessary steps, everyone can play a role in making the internet a safer place for children to explore and learn.

Internet Security

When it comes to safeguarding your child’s online data, a few principles should guide your actions:

– Know the apps that your child is using, how they work, and what data they collect.
– Read app privacy policies and terms of service before signing up for a service, and avoid services with poor ratings or numerous complaints.
– Limit the amount of data that your child shares and monitor the data that apps gather.
– Use additional safeguards like parental controls and two-factor authentication to add layers of protection.
– Regularly review and change passwords.

By following these steps, you can guarantee that your child’s online activities remain safe and secure.