COMPANY AGREES TO PAY $20 MILLION TO SETTLE FEDERAL CHARGESIn June, the US Department of Justice, and the Federal Trade Commission, announced that it had settled a case filed against Microsoft Corp., in the U.S. District Court for the Western District of Washington, for $20 million in civil penalties together with injunctive relief. It was alleged that Microsoft collected personal data, (such as telephone numbers), from minors who were users of the Xbox Live service, all in violation of the Children’s Online Privacy Protection Act (COPPA) and the Children’s Online Privacy Protection Rule (COPPA Rule).
In a written statement, Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department's Civil Division, noted, “It is essential that before collecting children’s personal information, online companies provide complete and timely disclosures about their information collection practices so that parents can make informed decisions …. The department and the FTC are committed to ensuring that companies comply with the laws specifically designed to safeguard the privacy of children.”
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