Microsoft to Pay $20 Million FTC Settlement for Illegally Collecting Children's Personal Information.

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. As part of a proposed order filed by the Department of Justice on behalf of the FTC, Microsoft will be required to take several steps to bolster privacy protections for child users of its Xbox system.