The Federal Trade Commission announced it has reached a settlement agreement with Microsoft for $20 million over how it handled kids’ data on the Xbox.

Microsoft was accused of violating the Children’s Online Privacy Protection Act (COPPA) by collecting kids’ personal information without notifying their parents, anytime a child signed up on the Xbox platform.

“Our proposed order makes it easier for parents to protect their children’s privacy on Xbox, and limits what information Microsoft can collect and retain about kids,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “This action should also make it abundantly clear that kids’ avatars, biometric data, and health information are not exempt from COPPA.”

Microsoft also agreed to a number of measures, including extending COPPA protections to third-party to game publishers on Microsoft’s platforms, as well as recognizing and protecting avatars based on children’s picture under COPPA.

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. For example, the order will extend COPPA protections to third-party gaming publishers with whom Microsoft shares children’s data. In addition, the order makes clear that avatars generated from a child’s image, and biometric and health information, are covered by the COPPA Rule when collected with other personal data. The order must be approved by a federal court before it can go into effect.