Microsoft Faces $20 Million Fine for Unlawful Collection of Minors' Personal Data

Microsoft has been ordered to pay a $20 million fine after an FTC investigation found the company guilty of collecting and retaining personal data from children under 13 without parental consent. The Xbox account creation process required users to provide personal details before notifying parents, violating the Children's Online Privacy Protection Act. Microsoft has updated its process, now requiring date of birth first and obtaining parental consent before collecting further information from minors. The company has also deleted retained data due to a technical glitch and is developing a next-generation identity and age validation system to improve child user protection.