Google will pay $170 million for YouTube over allegations that it has made millions of dollars by illegally collecting personal information from children without parental consent, regarding the Federal Trade Commission investigation.
Under the deal, Google is paying $136 million to the Federal Trade Commission and $34 million to New York for allegedly violating YouTube’s Online Privacy Protection Act. Let’s also point out that the $136 million fine is the largest amount the FTC has ever received. FTC President Joe Simonssaid YouTube is popular with child customers. When it comes to complying with COPPA (Children’s Online Privacy Protection Act), he added that he refuses to accept that parts of the company’s platform are explicitly directed to children. Simons said YouTube has no alibi for violations of the law.
The COPPA rule requires sites for children to disclose their data practices and get parental consent to collect information about children under the age of 13.
YouTube marketed itself to Mattel and Hasbro as a “leader” in reaching children aged 6-11. However, the company said it had no users under the age of 13 on its platform and therefore did not need to fit the channels on its platform to COPPA, which caused confusion. However, in a blog post published Wednesday, YouTube said it had taken steps to address concerns about its apps.
YouTube has advised parents to use YouTube Kids, a separate app, to allow children under the age of 13 to watch on their own. The company said it would introduce the app more intensively throughout its services and create $100m to create new children’s content for three years, both on YouTube and YouTube Kids.