It is being widely reported today that Google has agreed to pay the FTC a $170 million fine for YouTube violating COPPA (Children’s Online Privacy Protection Act). The FTC has enforcement power over COPPA and the fine is the largest civil penalty the FTC has levied under COPPA, “dwarfing the previous record fine of $5.7 million that the agency levied this year against the owner of TikTok, a social video-sharing app.” New York Times. YouTube’s violation was collecting data about children under the age of 13 viewing videos and then using that data to profit by selling advertising targeting those users. Apparently, YouTube even told some advertisers that they were not violating COPPA because they had no viewers under the age of 13. Anyone with a phone or tablet and a toddler knows that statement is miles from the truth.
While some argue the fine is a mere slap on the wrist for Google, following on the heels of the $5 billion Facebook privacy settlement, it shows an increasing intolerance for privacy violations in the US. The fine may not really affect YouTube’s bottom line, but it serves as a warning that even the biggest corporations are going to be expected to comply with privacy laws. You can assume that the FTC hopes that smaller corporations that target children will think twice about their privacy practices and follow the law to avoid such fines.