The search engine Google,
which is owned by Alphabet Inc, and its YouTube video service will pay $170
million to settle allegations for breaking the federal law by collecting
personal information about children, said by the Federal Trade Commission, on
Wednesday. The settlement which will receive $34 million, with
the FTC and the New York attorney general's office is the largest since a law
banning collecting information about children under age 13 came into effect in
1998. In 2013, the law was revised to include "cookies," used to
track a person's internet viewing
habits. YouTube had been accused to deliver million of dollars in
targeted advertisements using cookies through tracking viewers of children's
channels without parental consent. The comment declined by Google when this
settlement leaked. Companies create channels which YouTube allow which include
advertisements that create revenue for both the company and YouTube. The
government in its complaint said that YouTube touted its popularity with
children in marketing itself to companies like Mattel and Hasbro. According
to the complaint it told Mattel that, YouTube is today's leader in reaching children
age 6-11 against top TV channels. The company refused to acknowledge that
portions of its platform were clearly directed to kids. The proposed settlement
in addition to the monetary fine, requires the company to refrain from
violating the law in the future. Also, it has to notify channel owners to get
consent from parents before collecting information on children about their
obligations.
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