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ARTICLE · 13 JUNE 2023

Microsoft Xbox Alleged COPPA Violations Costly: $20 Million

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
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Blaming a "data retention glitch," Microsoft has agreed to pay the Federal Trade Commission $20 million to settle allegations that the company's Xbox gaming system has illegally collected personal...

United StatesPrivacy
Cynthia Larose
Cynthia Larose
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Blaming a "data retention glitch," Microsoft has agreed to pay the Federal Trade Commission $20 million to settle allegations that the company's Xbox gaming system has illegally collected personal information from children signing up to use Xbox -- even when the company was aware that users were under the age of 13.

The complaint is certainly worth a read for any company who owns and operates online properties that require registration and have users under 13. After you've read the complaint, it is time to analyze your data collection processes in light of this important complaint and settlement under the Children's Online Privacy Protection Act (COPPA).

Here's why. The FTC/Microsoft settlement reminds us that COPPA covers both websites and online services that are "directed to children" and those with "actual knowledge" they are collecting data or dealing with data from kids under 13. Whether your company actually collected the information or you receive the

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