Microsoft Pays $20 Million to Resolve FTC Kids’ Privacy Case (1)

Microsoft Corp. agreed to pay $20 million to settle a US Federal Trade Commission claim that the company illegally collected data from children who signed up to use its Xbox gaming system.

The Redmond, Washington tech giant required anyone using the Xbox Live service to register with a name, email address and age information. But even when the company was aware of users under age 13 it continued to collect and retain data in violation of a US kids’ online privacy law, according to the FTC.

Microsoft blamed a “data retention glitch” and promised to improve its systems.

“In addition ...