LONDON: Google’s YouTube agreed on Wednesday to pay a $170 million fine and limit ads on kids’ videos to settle claims that the company violated children’s privacy laws.
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, YouTube announced at the same time, moves that will hamstring its ability to sell advertisements against a massive portion of its media library.
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.