Techvia Alliance – Penalty on Google's YouTube for collecting data on kids



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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