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They have stated a number of times that NO INFORMATION from Kinect leaves your XB1 without your permission. The device is technically always on, but is in a standby mode where the camera is off(power saving) until commanded to wake up. The "data collection" is when the Kinect camera is turned on and the actual scan of the physical space sends the "data" to the XB1 to be interpreted. Therefore it is "collecting data" to determine what you want it to do next. That doesn't mean it is sending the info anywhere or storing data to be sent or used outside of what it was being used for up to that minute.