Press "Enter" to skip to content

Google to Cover Around $200 million to FTC over YouTube probe

Last updated on August 31, 2019

Alphabet Inc’s Google will pay around $200 million to repay a Federal Trade Commission investigation into YouTube’s alleged breach of a kids’ privacy law, a person briefed on the matter told Reuters.

Politico reported that the settlement is anticipated to be between $150 million and $200 million. The solution is defined to be announced next week and is the biggest ever fine levied for breaking up the Children’s Online Privacy Protection Rule by collecting personal information from children without parental approval.

The FTC voted 3-2 to approve the settlement and delivered it to the Justice Department included in this inspection procedure, Reuters supported, citing an individual familiar with the issue. The Washington Post reported that the settlement’s acceptance in July but didn’t detail the amount of the civil penalty.

The payoff will surpass the previous record set in February; a $5.7 million civil penalty levied on Musical.ly, which didn’t request consumers’ ages for 3 decades. The internet library for Musical.ly — currently called TikTok — features songs popular with children.

Senator Ed Markey, a Democrat, said Friday”the FTC seems to have let YouTube off the hook using a minimal fine for violating users’ privacy online. And in this instance, Google’s intrusions on children’ private info are in issue. The business said it constructed the website” to make a more secure environment for children to explore their interests and curiosity while providing parents the resources to optimize the expertise for their children.”

Parents can pick from three different age classes to select age-appropriate articles – preschool, ages 5-7, and 8-12.

Katharina Kopp, deputy director of the Center for Digital Democracy, said Friday”a settlement sum of $150-200 million will be low, thinking about the egregious nature of the breach, just how much Google profited by violating the law, and awarded Google’s size and earnings.”

She included the nice” would effectively benefit Google for participating in illegal and massive information collection.”

Back in April 2018, the center, combined with several other groups, filed an FTC complaint alleging YouTube gained from children”without providing direct notice to parents and getting their approval as required by legislation. Google uses this information to target ads to kids throughout the web and across apparatus.”