Video Game Company to Pay $20 Million in FTC Settlement Over Child Privacy Violations

A major video game developer has agreed to pay $20 million to settle allegations brought by the Federal Trade Commission (FTC) over violations of the Children’s Online Privacy Protection Act (COPPA). The settlement comes after regulators accused the company of unlawfully collecting personal data from children without parental consent, a direct breach of federal privacy laws.

The FTC’s enforcement action highlights growing concerns over data privacy in the gaming industry, particularly regarding minors. The agency alleged that the company failed to implement adequate safeguards to protect young players, allowing unauthorized data collection and potential misuse of sensitive information.

As part of the settlement, the company will not only pay the substantial fine but must also implement stricter privacy measures, including enhanced parental controls and transparent data policies. This case underscores the FTC’s commitment to enforcing COPPA regulations and sends a strong message to gaming companies about the importance of protecting children’s online privacy.

With regulators tightening scrutiny on digital platforms, this settlement serves as a warning to the gaming industry to prioritize compliance or face severe financial and legal consequences.

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