Alphabet Inc. owned Google’s video streaming service provider, YouTube had agreed to pay off $170 million in order to settle accusations that the search engine giant’s media streaming behemoth had allegedly broken federal law by collecting personal intel of the children, FTC (Federal Trade Commission) said in a statement on Wednesday, the 4th of September 2019.
On top of that, according to the latest lawsuit, YouTube was charged with tracking kid’s channel preference by capitalizing cookies and using those cookies to target users with hundreds of thousands of dollar worth of advertisement without any kind of parental consent, while Google neither pleaded ‘not guilty,’ nor acknowledged the charges directly.
Meanwhile, according to the settlement, the Federal Trade Commission alongside NY Attorney General’s office would be receiving $34 million out of $170 million, remarking Federal Trade Commission’s largest punitive measure ever against any internet service provider for collecting personal information of the children below 13-years since the law came into effect back in the 1998s.
Besides, the legislation was revised back in 2013 to introduce ‘cookies’ in it which were used to track users’ browsing behaviour. As an immediate response to the financial penalty, adding that the media streaming goliath would treat all data gathered from people watching Children’s content as it had been browsed by a kid, YouTube released a statement in a blog post on Wednesday (Sept.
4th) saying, “This means that we will limit data collection and use on videos made for kids only to what is needed to support the operation of the service. ”