FTC Fines Chinese Robot Toy Maker $500K for COPPA Violations
The Federal Trade Commission (FTC) has taken action against Chinese robot toy maker Apitor. The company is accused of violating the Children's Online Privacy Protection Rule (COPPA) by collecting geolocation data from children aged 6-14 without parental consent. The FTC has proposed a $500,000 fine, currently suspended due to Apitor's financial situation.
Apitor's mobile app required location sharing for use, allowing a third-party, JPush, to gather and use children's location data without parental knowledge. The FTC filed a complaint against the company, stating that it had misled consumers by claiming COPPA compliance. This is not the first time the FTC has enforced COPPA strictly. Recently, it fined Disney $10 million for similar violations. The proposed settlement requires Apitor to delete the collected data and potentially pay the fine if it misrepresented its finances. The FTC's Bureau of Consumer Protection director stressed that companies must notify parents and obtain consent if collecting personal information from children, even via third parties.
The FTC's action against Apitor serves as a reminder for companies to comply with COPPA when dealing with children's personal information. The proposed settlement, including the potential fine and data deletion, aims to protect children's privacy and hold Apitor accountable for its actions.
