YouTube Agrees to Record $170 Million Settlement Over Child Privacy Violations
YouTube pays a historic $170 million fine to resolve claims that it illegally collects data from children without parental consent. The penalty represents the largest Children's Online Privacy Protection Act settlement in FTC history.
YouTube pays a record $170 million fine to settle allegations that it illegally collects personal information from children without parental consent. The Federal Trade Commission and the New York attorney general bring these charges against Google's video platform, stating that it earns millions by tracking young viewers using cookies to serve targeted ads. The settlement includes $136 million for the FTC and $34 million for New York, marking the largest penalty ever obtained in a Children's Online Privacy Protection Act case since the law passes in 1998.
The complaint reveals that YouTube markets itself to major toy companies like Mattel and Hasbro as a leader in reaching children ages six to eleven. Despite this internal advertising strategy, the company allegedly tells other businesses that it does not have users younger than thirteen and therefore does not need to comply with child privacy rules. FTC Chairman Joe Simons states that there is no excuse for YouTube's violations, noting that the platform refuses to acknowledge that portions of its site clearly target kids.
The FTC commissioners pass the settlement in a 3-2 vote along party lines, with two Democrats voting against it because they believe the punishment does not go far enough. New York Attorney General Letitia James accuses Google and YouTube of knowingly putting children at risk just to keep advertising dollars rolling in. Following the announcement, YouTube publishes a blog post stating that it takes steps to address the concerns raised over its data practices.