|By Kramer Phillips | 10 months ago|
Google’s YouTube just cost the company a boatload of money.
The tech giant reportedly will payout a massive $176 million fine to the FTC, following a settlement in regards to YouTube’s marketing to children.
Google will pay $170 million to settle a Federal Trade Commission complaint that its YouTube subsidiary illegally collected children’s personal information, the agency announced Wednesday morning.
“This settlement achieves a significant victory for the millions of parents whose children watch child-directed content on YouTube,” FTC chairman Joseph Simons and commissioner Christine Wilson wrote in a release. “It also sends a strong message to children’s content providers and to platforms about their obligation to comply with the COPPA Rule.
“We believe the significant monetary penalty, coupled with the far-reaching conduct relief, is almost certainly better than what we would achieve in litigation. Importantly, the relief for consumers is immediate, rather than after years of litigation,” they added.
The FTC found that YouTube’s tracking of underage users violated provisions of the 1998 Children’s Online Privacy Protection Act (COPPA) because the company failed to notify users of child-directed channels about the tracking and obtain parental consent.
Under a consent decree that is part of the settlement, YouTube will be required to build a system for “channel owners to identify their child-directed content” so YouTube can comply with COPPA rules.