Electronic Toy Maker VTech Settles FTC Allegations That it Violated Children’s Privacy Law, FTC Act

By  //  January 19, 2018

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Settlement marks the FTC’s first children’s privacy and security case involving connected toys

Electronic toy manufacturer VTech Electronics Limited and its U.S. subsidiary have agreed to settle charges by the Federal Trade Commission that the company violated a U.S. children’s privacy law by collecting personal information from children without providing direct notice and obtaining their parent’s consent, and failing to take reasonable steps to secure the data it collected.

FEDERAL TRADE COMMISSION – Electronic toy manufacturer VTech Electronics Limited and its U.S. subsidiary have agreed to settle charges by the Federal Trade Commission that the company violated a U.S. children’s privacy law by collecting personal information from children without providing direct notice and obtaining their parent’s consent, and failing to take reasonable steps to secure the data it collected.

VTech will pay $650,000 as part of the settlement with the FTC.

In a complaint filed by the Department of Justice on behalf of the FTC, the Commission alleges that the Kid Connect app used with some of VTech’s electronic toys collected the personal information of hundreds of thousands of children, and that the company failed to provide direct notice to parents or obtain verifiable consent from parents concerning its information collection practices, as required under the Children’s Online Privacy Protection Act (COPPA).

In its first children’s privacy case involving Internet-connected toys, the FTC also alleges that VTech failed to use reasonable and appropriate data security measures to protect the personal information it collected.

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