Toymaker VTech Settles Charges of Violating Child Privacy Law

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Toymaker VTech Settles Charges of Violating Child Privacy Law
“Unfortunately, VTech fell short in both of these areas.”
The agency said in its complaint that VTech had collected data about more than 638,000 children — including text messages, photos,
and audio messages — without notifying users or asking parents for permission to collect that information.
The company was accused of violating the 1998 Children’s Online Privacy Protection Act, which requires
parents to give permission for a company to collect internet data on children under the age of 13.
also accused the company of having inadequately secured its network in 2015, when VTech’s servers were hacked.
The popular electronic toymaker VTech Electronics agreed to pay $650,000 to settle charges
that it had collected digital data on children without parents’ permission and failed to keep that information secure from hackers, the Federal Trade Commission said Monday.
said that the action against VTech, a Hong Kong-based maker of online apps
and toys, showed the agency’s dedication to child safety and privacy issues — particularly given the fast growth of the connected toy market.
“As connected toys become increasingly popular, it’s more important than ever
that companies let parents know how their kids’ data is collected and used and that they take reasonable steps to secure that data,” said Maureen K. Ohlhausen, the commission’s acting chairwoman.

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