Microsoft to Pay $20 Million Fine for Illegally Collecting Children's Data

Microsoft will pay $20 million to settle charges by the Federal Trade Commission for violating children's privacy laws by collecting data from children under 13 without parental consent during account creation for its Xbox gaming system
Microsoft disclosed some of this information to third parties and failed to delete data for years even when parents didn't complete the account creation process or provide consent
Microsoft blamed a "technical glitch" and said the data was never used, shared or monetized but will have to obtain parental consent for existing accounts, establish systems to delete children's data within two weeks and notify gaming publishers when users are children
The proposed settlement requires Microsoft to amend privacy protections for child Xbox users and extend privacy law protections to third parties it shares data with
The charges come as regulators in the U.S. and Europe have penalized major tech companies for violating laws aimed at safeguarding children's privacy online