YouTube has been fined a record $170 million to settle allegations that its collected children’s data without parental consent.
The Federal Trade Commission (FTC) and the New York Attorney General made the allegations, stating they failed to comply with the Children’s Online Privacy Protection Act (COPPA).
It has ordered YouTube to pay $136 million to the FTC and $34 million to the New York Attorney General. On top of the payment, YouTube must create, use and maintain a system channel users to identify child-directed content.
COPPA states companies with child-directed content are required to give notice of privacy practices and must get parental consent to collect data for children under the age of 13.
As part of the settlement with the FTC, YouTube must provide notice about its data collection practices. Channel owners must also be notified that their child-directed content could be in breach of the rules.
“YouTube touted its popularity with children to prospective corporate clients,” said FTC Chairman Joe Simons.
“Yet when it came to complying with COPPA, the company refused to acknowledge that portions of its platform were clearly directed to kids. There’s no excuse for YouTube’s violations of the law.”
