Child online safety concerns with Chinese toy robots resolved, Feds say

Federal prosecutors settled allegations that a Chinese toymaker illegally collected data on children using their robotic toys, according to a Tuesday statement from the Department of Justice. Apitor Technology Co. entered a stipulated order resolving alleged violations of the Children’s Online Privacy Protection Act, known as COPPA, brought by the Federal Trade Commission. The DOJ will ensure that businesses respect parental rights regarding the collection and use of children’s personal information, according to the assistant attorney general of the DOJ’s civil division, Brett A. Shumate.

COPPA federally bars companies from collecting data on children under the age of 13 without parental notification or consent. Apitor’s toys were marketed to children aged 6 to 14, the FTC noted.

What kind of information did they collect? The FTC accused the company of allowing a third party to collect geolocation data from children without parental consent. Apitor sold robot toys that came with a free app that allowed children to program and control the toys, according to regulators. Apitor’s app would not allow Android users to connect with the toy unless their location sharing was turned on, the FTC said.

Apitor also integrated a third-party software into the app that allowed the third party to collect location data on users. Once Android users downloaded the app, the third party began collecting and sharing users’ exact location data without the knowledge of parents or children. That third party could use that location data for any purpose, including targeted advertising, the FTC noted. Apitor violated COPPA by failing to notify parents or obtain consent for a third party to collect geolocation data on child users, the regulators alleged.

What happens now? Apitor is barred from collecting and using child data without making a reasonable effort to notify and obtain verifiable parental consent, according to the DOJ. The China-based company must also delete personal information it previously collected from children. A $500,000 fine was also ordered. However, the fine has been suspended due to the company’s inability to pay, the DOJ added.

Dig deeper: Read my previous report on the $10 million fine Disney recently incurred for illegally collecting data on kids.