YouTube agreed to pay a $170 million fine and limit ads on kids’ videos to settle claims that the company violated children’s privacy laws, according to Bloomberg.
The world’s largest video-sharing site agreed to pay the fine, which is a record for a children’s privacy case, of $136 million to the U.S. Federal Trade Commission and $34 million New York State for failing to obtain parental consent in collecting data on kids under the age of 13, the FTC said. Starting in four months, Google also will limit data collection and turn off commenting on videos aimed at kids.
The settlement under the 1998 Children’s Online Privacy Protection Act, or COPPA, represents the most significant U.S. enforcement action against a big technology company in at least five years over its practices involving minors. Washington is stepping up privacy and antitrust scrutiny of the big internet platforms that have largely operated with few regulatory constraints.
“The $170 million total monetary judgment is almost 30 times higher than the largest civil penalty previously imposed under COPPA,“ FTC Chairman Joe Simons said in a joint statement with fellow Republican Commissioner Christine Wilson. “This significant judgment will get the attention of platforms, content providers, and the public.“
YouTube said it will rely on both machine learning and video creators themselves to identify what content is aimed at children. The algorithms will look at cues such as kids’ characters and toys, although the identification of youth content can be tricky. Content creators are being given four months to adjust before changes take effect, the company said.
The company will also spend more to promote its kids app and establish a $100 million fund, disbursed over three years, “dedicated to the creation of thoughtful, original children’s content,“ CEO Susan Wojcicki wrote in a blog. “Today’s changes will allow us to better protect kids and families on YouTube,“ Wojcicki wrote in the blog. “In the coming months, we’ll share details on how we’re rethinking our overall approach to kids and families, including a dedicated kids experience on YouTube,“ she said.
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