Microsoft must Pay $20 million for Illegally Collected Personal Information from Children

Microsoft will pay $20 million to settle Federal Trade Commission charges that it 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 illegally retaining children’s personal information.

[Snookies12]

On one hand, I absolutely HATE this COPPA B.S. because it has ruined YouTube for adults. However, in this instance, it very much needed to be enforced.

[SullysCigar]

They're trying to tighten the internet up all over the world. As you say, it's good in some ways, but they're also using 'the children' to stamp out freedom of speech and the right to an opinion that doesn't meet the governments' preferred narratives (aka: 'wrongthink').

All that aside, what Microsoft has been caught doing is not cool, and I'm glad they've been busted for it. Clearly $20million is not going to hurt them, but they won't enjoy this being brought into the public eye. Hopefully they'll change this nonsense now they're bang to rights.

[darthv72]

I thought kids need their parents permission? I know I had to create my kids silver memberships for them as they were under 18. If a kid creates a profile unbeknownst to the parent... how is MS going to know?

[SullysCigar]

^ That's not really the point, @darthv77. Microsoft were collecting and sharing this data for child accounts for years, even without the parental consent part of the process having taken place. They had a pre-checked agreement as part of the process that the kids filled out, to 'allow' them to do this, but this is in violation of the Children’s Online Privacy Protection Act, making it illegal.

[darthv72]

Is this the same agreement that everyone fills out, or is it somehow specific to kids?

[SullysCigar]

^ I don't understand what difference that makes? I'd assume it's the same, but it's impacted by a different law if it's a kid's account, because that particular act is designed to protect kids, not adults.

[darthv72]

the point im trying to make is that regardless of a persons real world age... MS cant tell who is or is not following the rules when it comes to signing up. Kids can / do lie on forms to gain access to things they shouldnt. That is personal responsibility and a company can make all the terms of service they want... it wont stop a kid from engaging in improper activity because kids get curious and like to see how far they can go before they get caught. When you are old enough, the allure is no longer there. Its like taking a drink before you are 21, after 21 its no big deal. Half the fun of being a kid is seeing what kind of mischief you can get away with.

And why i asked about the form is because they lay out all the rules in the ToS and people are supposed to read them before they agree to it. And yes there are plenty who skip that part and just want to get onto the next screen... I'm sure we are ALL guilty of that in some way or another. Many may not know this but ever since the 80's, when Regan deregulated advertising towards children, that is when things took a big turn in regards to targeted advertising. Remember cartoons like Gi Joe, Transformers, He-Man... all of which weren't so much about the 'show' but instead about the toys those companies wanted to sell. And the same goes for breakfast cereal... all of which are to entice kids to want them. Video games have always been targeted towards kids. Those of us who grew up with them to know that.

People want to chastise Ms for collecting info on kids well news flash... they collect info on EVERYONE. They do not discriminate when it comes to collecting the info of people who sign up for their services. I imagine its the same for Sony and Nintendo as well.

Personally speaking, I was in control of my kids gaming profiles for XB, PS and Nintendo because that is the kind of parent I am. Its MY responsibility, not my kids and certainly not MS or Sony or Nintendo. Now they are older, they all have control over their own accounts, which is fine by me as they were hogging my XBL and PSN all the time when they were younger. Now THEY are responsible for their actions and I would hope they do the same when they become parents.

[SullysCigar]

^ I'm sorry, @darthv77, at this point I'm honestly not sure if you're still missing the point or you're being deliberately obtuse in order to fashion some flimsy defence on Microsoft's behalf.

First of all, other companies have certainly done this too - and they're equally at fault in regions where COPPA is in force. And they've been duly fined.

Secondly, the fact that they collect this data for everyone is totally irrelevant. If an account clearly indicates that the holder is a minor and it's unverified by a parent or guardian, they shouldn't be collecting and sharing that data with other companies. To do so IS in breach of the COPPA.

TL;DR: It is ENTIRELY Microsoft's responsibility. The ToS does not supersede the COPPA, nor can they hide behind the narrative "it's not our fault their parents are sh!t, your honour".

[just_looken]

Yep i am so dam tired of America being the 21st century world police force.

Every website must bend to usa law every game must tune into what America wants every tv show now must be made for America audience and America invades a country every 5-8 years to impose there beliefs and law onto the people..

The internet was a free place to express ones self now its full of bubbles and us law enforcers.

I like to watch international tv when its free of america control no doubt if usa citizens saw a french beach or the country of finland pre invasion of nato they would have a hear attack.

[isarai]

That's a very creepy metric to target specifically

[Eonjay]

Hide ya kids hide ya wife.

[XiNatsuDragnel]

Yep Microsoft needed that humility imo

[Relientk77]

"And I would have gotten away with it too, if it weren't for your meddling kids!"

- Microsoft & every Scooby-Doo villain

[darkrider]

Microsoft being Microsoft. What an amazing trillion dollar company

[StormSnooper]

and they want everyone to trust them with acquiring a large chunk of gaming... Like they have acted in a trust worthy way in the past.

[potatoseal]

Not a very good headline for MS leading into their showcase

[rlow1]

First, I’m glad they were called out on this and fined.
But anyone trying to say this is just a Microsoft issue, are only kidding themselves.
Amazon ( who also was fined)
Meta
Google
TikTok
And a host of other companies, honestly, it’s sad the the governments of the world haven’t done more.

[SullysCigar]

Can you point me to where anyone here said that? You're arguing with yourself...

[rlow1]

I was responding to @darkrider and the title. It’s limiting when you’re talking about a company, when this is so indicative of the whole tech industry. Regardless of the fine, this is something everyone should be pressuring their politicians on regardless of age.

But I’m happy this at least highlights a major problem

[Aloymetal]

Microsoft got off easy, parting with 20 million is the equivalent of me losing a $1 bill.

[S2Killinit]

@rlow1
Except what you are doing is suggesting that it is better to mention a bunch of corporation names when one of them is caught red handed so that the readers think “well I guess they are all doing it so it’s fine”, instead of letting the world
Know the truth that MICROSOFT was caught today with its hand in the jar, stealing and profiting off of childrens’ legally protected information.

[jznrpg]

The old excuse. look! they do it too! so I’m not as guilty because others do the same thing!
Deflection makes this no better.

[darkrider]

Right on.

[mastershredder]

Careless parents, ignorant kids plus corporate greed, what could go wrong?

[Eonjay]

I mean I don't think it is careless parenting to not realize the game you bought for your kid was spying on them.

[jznrpg]

Not surprising at all. I don’t let my kids have an Xbox for a reason.

[darthv72]

If you let them have a PS or a Switch... its the same situation. Provided you let them do what they like with it, or are you a responsible parent?

[DickyD1226]

How many are you going to comment on? It's a Microsoft issue not just an Xbox issue.

[S2Killinit]

Have Sony and Nintendo been convicted of this? Or are you assuming? Can you provide a link please?

[Petebloodyonion]

Good job from the FTC!
children are the most vulnerable people and are easy to influence.
Let's hope that this sends a clear message to all other companies that this is not tolerable.

[darthv72]

It wont. Its been like this since the 80's. The only way to stop this would be to reinforce the regulations against child marketing. Then that would eliminate all targeted children marketing of toys, cereal and video games.

[Petebloodyonion]

You know in Canada we have laws that prevent ads selling toys or aimed at kids during the day.

[Imalwaysright]

Should be 100x more.

[ghostrider32]

I didn't know Microsoft was full of Twilight werewolves.

[SICKINDIVIDUAL]

Collecting data on children and Kinect always online 🤔.

[Flenter]

Shit company. Should have made it 20 billion!

[Inverno]

Should fine the parents too while they're at it. Maybe then they start actually taking more responsibility for the children they wanted, rather than dump a tv or tablet Infront of them so they can be left alone.

[raWfodog]

But this fine was the result of a complaint where MS collected (and retained) child info even when a parent did not give express authorization to do so ("even when a parent failed to complete the process"). How is this the parents fault in this case?

[Inverno]

Because kids don't things without their parents consent all the time, it's their responsibility to keep track of what their children are doing. If your kid has a gaming console, or a PC, or a phone or a tablet then you should know they are connected to the internet. Practically everything online these days requires some acct to be made, you think kids are asking their parents for consent?

I'm not siding with Microsoft, and this whole info harvesting that's been going on for years should've been put a stop to, but parents should start being more on top of what their kids be doing online. That's why parental controls exist, why when creating an acct you're given the option to make a parent acct, or kid acct, why kid accts are restricted once their age is put into, why kids fake their birthdays.

[raWfodog]

As a parent of three kids (and being a kid myself once upon a time), believe me when I say that it is impossible to keep track of what your kids are doing unless you are with them 24/7. Or unless you try to forbid them from ever using an electronic device.

In this case, there was supposed to be a failsafe in place where MS was supposed to discard collected information from children if a parental consent was not given. They did not do that and instead held onto the collected data for a number of years. They deserved that fine all by themselves. I hold parents to high standards as well but in this case they couldn’t control what MS was doing with their children’s info when MS had the obligation to discard it.

[princejb134]

make 200 mill in 2 years and get caught by FTC and pay 20 mill back...profit!!!

[YourMommySpoils]

On the flip side, those children are the only ones who support xbox here. Poor little kidos.

[BrainSyphoned]

If cutting off their body parts is ok I guess I am fine with stealing their digital identity as well.

[StormSnooper]

wow MS, good job...

[PapaBop]

20m is chump change for them, should have made it a lot more and donated it to children's charities.

[neomahi]

A poor man would go to prison. The rich man pays a fine, that's pocket change to them. And everyone is approving their acquisition of Activision-Blizzard. (By-the-way in the prison system, inmates don't like people that mess with children, they'll beat you to death.) What an upside down world where the poor continue to suffer. The poor have to be like the rich in order to become such and if they can't go to prison. But if they can become wealthy, then maybe they can get this kind of treatment....... But everyone forgives and forgets right? Gamers let Microsoft go to let them screw them over a different day. With Xbox One: "Oh how dare you put DRM policy on us". Microsoft just endangered your kids. If it was a school teacher, they'd be locked up. A bus driver, you'd tear into them."

[Angyobangyo]

$20 million....only! This is a slap on the wrist for MS.

[hotnickles]

Lol ftc says “give me 20m and I’ll unsee” what a useless scam of an organization

[anast]

20 million...the threw the book at them...