In addition, according to the complaint, YouTube manually reviewed children’s content from its YouTube platform to feature in its YouTube Kids app. Several channel owners told YouTube and Google that their channels’ content was directed to children, and in other instances YouTube’s own content rating system identified content as directed to children.
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For example, Google and YouTube told Mattel, maker of Barbie and Monster High toys, that “YouTube is today’s leader in reaching children age 6-11 against top TV channels” and told Hasbro, which makes My Little Pony and Play-Doh, that YouTube is the “#1 website regularly visited by kids.” YouTube marketed itself as a top destination for kids in presentations to the makers of popular children’s products and brands. The complaint notes that the defendants knew that the YouTube platform had numerous child-directed channels. In the complaint, the FTC and New York Attorney General allege that while YouTube claimed to be a general-audience site, some of YouTube’s individual channels-such as those operated by toy companies-are child-directed and therefore must comply with COPPA. According to the complaint, eligible channel owners can choose to monetize their channel by allowing YouTube to serve behaviorally targeted advertisements, which generates revenue for both the channel owners and YouTube. The YouTube platform allows Google account holders, including large commercial entities, to create “channels” to display their content. There’s no excuse for YouTube’s violations of the law.” “Yet when it came to complying with COPPA, the company refused to acknowledge that portions of its platform were clearly directed to kids. “YouTube touted its popularity with children to prospective corporate clients,” said FTC Chairman Joe Simons. In addition, third parties, such as advertising networks, are also subject to COPPA where they have actual knowledge they are collecting personal information directly from users of child-directed websites and online services. The COPPA Rule requires that child-directed websites and online services provide notice of their information practices and obtain parental consent prior to collecting personal information from children under 13, including the use of persistent identifiers to track a user’s Internet browsing habits for targeted advertising. YouTube earned millions of dollars by using the identifiers, commonly known as cookies, to deliver targeted ads to viewers of these channels, according to the complaint. In a complaint filed against the companies, the FTC and New York Attorney General allege that YouTube violated the COPPA Rule by collecting personal information-in the form of persistent identifiers that are used to track users across the Internet-from viewers of child-directed channels, without first notifying parents and getting their consent. The $136 million penalty is by far the largest amount the FTC has ever obtained in a COPPA case since Congress enacted the law in 1998.
The settlement requires Google and YouTube to pay $136 million to the FTC and $34 million to New York for allegedly violating the Children’s Online Privacy Protection Act (COPPA) Rule. Google LLC and its subsidiary YouTube, LLC will pay a record $170 million to settle allegations by the Federal Trade Commission and the New York Attorney General that the YouTube video sharing service illegally collected personal information from children without their parents’ consent. Participants included FTC Chairman Joe Simons and Director of the FTC’s Bureau of Consumer Protection Andrew Smith. The news conference was also webcast view archival video here.
NOTE: The FTC hosted an IN-PERSON press conference at FTC Headquarters on September 4.
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