Microsoft Pays $20M for Improperly Collecting and Retaining Children’s Information

Microsoft was slapped with $20 million in fines in 2023 to settle FTC charges that it violated the Children’s Online Privacy Protection Act (COPPA). The FTC charged Microsoft with violating COPPA and the FTC Act by collecting personal information from children using the company’s Xbox Live online service and related products, collecting this personal information without parent consent, and storing the information longer than reasonably necessary. In addition to paying the large fine, Microsoft needs to bolster protections for children’s information, including requiring parental consent prior to collection and implementing a system to delete all collected information within two weeks of collection.