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A24 TECHNOLOGY
Thursday 5 sepTember 2019
YouTube to pay $170M fine after violating kids’ privacy law

By RACHEL LERMAN and Sen. Edward Markey, a
MARCY GORDON Massachusetts Democrat,
Associated Press said the settlement terms
WASHINGTON (AP) — won’t turn YouTube into a
Google will pay $170 million safe place for children and
to settle allegations its You- “makes clear that this FTC
Tube video service collect- stands for ‘Forgetting Teens
ed personal data on chil- and Children.’”
dren without their parents’ A coalition of advocacy
consent. groups that last year helped
The company agreed to trigger the FTC’s investiga-
work with video creators tion said the outcome will
to label material aimed reduce the amount of be-
at kids and said it will limit havioral advertising target-
data collection when users ing children.
view such videos, regard- “We are gratified that
less of their age. the FTC has finally forced
Some lawmakers and chil- Google to confront its long-
dren’s advocacy groups, standing lie that it wasn’t
however, complained that targeting children on You-
the settlement terms aren’t Tube,” said Jeff Chester,
strong enough to rein in a executive director of the
company whose parent, Center for Digital Democ-
Alphabet, made a profit racy.
of $30.7 billion last year on But he said the “paltry” fine
revenue of $136.8 billion, sends a signal that politi-
mostly from targeted ads. cally powerful corporations
Google will pay $136 mil- don’t have to fear serious
lion to the Federal Trade consequences for breaking
Commission and $34 million A sign with coming changes to kids’ comment on YouTube is displayed as Federal Trade the law.
to New York state, which Commission Chairman Joe Simons speaks at a news conference at the Federal Trade Commission Critics of the settlement —
had a similar investiga- in Washington, Wednesday, Sept. 4, 2019, to announce that Google’s video site YouTube has including dissenting Demo-
tion. The fine is the largest been fined $170 million to settle allegations it collected children’s personal data without their cratic Commissioner Re-
the FTC has levied against parents’ consent. becca Slaughter — also
Google, although it is tiny Associated Press expressed concern that
compared with the $5 bil- Tube channels feature car- consent from parents be- tal consent there, however, too much responsibility was
lion fine imposed against toons or sing-a-longs made fore they collect or use even on videos intended being placed on video cre-
Facebook this year for pri- for children. According to personal information from for children. The company ators to classify their own
vacy violations. the FTC, YouTube assigned children. The company also is avoiding that precaution content as kid-oriented,
The federal government ratings to its video chan- agreed not to use personal by instead turning off any and thus limited to less-lu-
has increased scrutiny of nels and even had a “Y’’ information they collected personal tracking on those crative ads. They say that
big tech companies in the category directed at kids from children before. videos, saying it will col- potentially allows Google
past two years — espe- ages 7 or under. Yet from YouTube has its own service lect only what is needed to to turn a blind eye as some
cially questioning how the an advertising standpoint, for children, YouTube Kids. make the service work. For try to cheat the system to
tech giants collect and use YouTube targeted ads to The kids-focused service such videos, YouTube also make more money.
personal information from those kids just as they would already requires parental won’t offer features like Andrew Smith, the FTC’s
their billions of customers. adults. The FTC’s complaint consent and uses simple comments and notifica- consumer protection direc-
Many of the huge Silicon details Google’s mixed math problems to ensure tions and won’t serve per- tor, acknowledged that
Valley companies are also messages about whom the that kids aren’t signing in on sonalized ads. concern as valid, but said
under antitrust investiga- service is geared for and in- their own. The settlement now needs YouTube “has strong incen-
tions aimed at determin- cludes as evidence Google YouTube Kids does not tar- to be approved by a fed- tives to police its platform”
ing whether the compa- presentations made to toy get ads based on viewer eral court in Washington. to avoid further action from
nies have unlawfully stifled companies Mattel and interests the way the main As with the Facebook set- the agency.
competition. Hasbro where YouTube is YouTube service does. But tlement, the FTC vote was Google is already under a
Kids under 13 are pro- described as the “new Sat- the children’s version does 3-2, with both Democrats 2011 agreement with the
tected by a 1998 federal urday Morning Cartoons” track information about opposing. FTC that barred it from mis-
law that requires parental and the “#1 website regu- what kids are watching in YouTube “baited kids with presenting its privacy policy
consent before companies larly visited by kids.” order to recommend vid- nursery rhymes, cartoons, and subjected the com-
can collect and share their “YouTube touted its popu- eos. It also collects person- and more to feed its mas- pany to 20 years of regu-
personal information. larity with children to pro- ally identifying device infor- sively profitable behavioral lar, independent privacy
Tech companies typically spective corporate cli- mation. advertising business,” Dem- audits. Google was fined
skirt that by banning kids un- ents,” FTC Chairman Joe On Wednesday, Google ocratic Commissioner Rohit $22.5 million in 2012 for vio-
der 13 entirely, though such Simons said in a statement. said that starting early next Chopra said in a tweet. “It lating that settlement when
bans are rarely enforced. Yet when it came to com- year, it will also limit tar- was lucrative, and it was il- the FTC found it improperly
In YouTube’s lengthy terms plying with the law, he said, geting on its main service legal.” used tracking cookies on
of service, those who are “the company refused to for videos meant for kids. He said in his dissent that Apple’s Safari browser.
under 13 are simply asked, acknowledge that portions Google is relying on vid- the settlement offered no Separately, the FTC fined
“please do not use the Ser- of its platform were clearly eo creators to label such individual accountability, video site Musical.ly, now
vice.” directed to kids.” items, though it will also em- insufficient remedies and called TikTok, $5.7 million
But younger kids commonly According to the settle- ploy artificial intelligence to a fine amount that “still al- earlier this year after finding
watch videos on YouTube, ment, Google and You- help. lows the company to profit it illegally collected person-
and many popular You- Tube will get “verifiable” YouTube won’t seek paren- from its lawbreaking.” al information about kids.q