The reason behind this punishment is because this company allegedly illegally collected personal data from children through its consoles. This type of activity is something that has been in the crosshairs of the US government for years.
The Microsoft case is not something isolated, and in fact, the company behind TikTok still has problems handling this type of information.
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Even Facebook has received similar accusations as well as other websites and applications. And it is that for some obtaining personal information and selling it is a lucrative business but not ethical.
The information in this case about Microsoft comes from a press release from the FTC.
This was posted on the commission’s site and claims that Microsoft violated COPPA. This is the Children’s Online Privacy Protection Act.
That is for having data from accounts owned by children and operating them without permission from parents or legal guardians.
The FTC hopes that this million-dollar fine will teach Xbox to prioritize child protection on the console. As expected, this division of the company has already responded.
According to Xbox, it regrets the lack of security in the protection of children’s data, and promises to have better practices to handle them in the future.
So it’s an admission of guilt by Xbox and Microsoft, along with a promise that things will get better from here on out.
It should be noted that COPPA has existed since 1998, and that since the company entered the console business it has complied with it. So what happened?
The FTC notes that from 2015 to 2019, the company that made MS Windows did not force a parent or guardian to participate in creating an Xbox account after the child provided the necessary information.
There appeared a verification screen that allowed sharing personal data with advertisers. In view of the above, the so-called Software Giant must follow the recommendations of the FTC to handle the information.
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