Microsoft has denied claims that it is tracking the location of Windows Phone 7 customers through the operating system's camera application, but has promised to investigate what appears to be yet another data privacy concern.

The firm is facing a legal challenge in a Seattle court from a customer called Rebecca Cousineau, who claims that the camera application records data on an individual's location regardless of whether permission has been granted or not.

A Microsoft spokesperson declined to comment directly on the case, but said that the company will "investigate the claims raised in the complaint" to ensure that it adheres to its own standards on privacy.

"Our objective was - and remains - to provide consumers with control over whether and how data used to determine the location of their devices is used, and we designed the Windows Phone operating system with this in mind," they said.

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