Toy Maker’s Privacy Blunder: U.S. Sues Over Kids’ Data Breach!
Toy maker Apitor is in hot water after the U.S. Justice Department filed a lawsuit for allegedly breaching the Children’s Online Privacy Protection Rule. The complaint claims Apitor allowed a Chinese third party to gather kids’ geolocation data without parental consent. The proposed settlement involves a $500,000 fine—on hold due to financial woes.
Hot Take:
In a move that gives “playing with toys” a whole new meaning, the U.S. Department of Justice has decided to play a game of legal tag with Apitor Technology. Turns out, the game involves a bit more than hide and seek, with the toy maker allegedly letting a Chinese third-party track kids’ locations like a global game of Marco Polo, but without the splashes or consent. It’s a case where the term “playdate” has an ominous ring to it, and Apitor is now learning that the only thing worse than stepping on a LEGO is stepping on the wrong side of COPPA!
Key Points:
- Apitor Technology allegedly allowed a Chinese third party to collect children’s geolocation data without parental consent.
- The U.S. Department of Justice has filed a lawsuit following the Federal Trade Commission’s notification.
- The violation is based on the Children’s Online Privacy Protection Rule (COPPA).
- Apitor’s app used a third-party SDK to collect precise location data from children.
- A proposed settlement includes a $500,000 penalty and compliance requirements, though the penalty is on hold due to financial issues.