Google-owned YouTube has settled with the Federal Trade Commission and the New York Attorney General, offering to pay a fine of $170 million on allegations that it violated children’s privacy laws. The settlement involves the largest-ever penalty under the Children’s Online Privacy Protection Act, which YouTube allegedly violated by collecting user information from kids to fuel its behavioral advertising business. And it could affect the strategies of all creators of children’s videos on YouTube, including large companies such as Mattel (MAT) and Hasbro (HAS), according to federal officials. Companies of all types have strong business incentives to gather and monetize information about children,. Personal information about a child can be leveraged to hook consumers for years to come, so it is incumbent upon the FTC to enforce federal law and act as a check against the ever increasing appetite for children’s data.


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