Apitor Fined $500K for Secretly Collecting Kids' Location Data
Chinese robot toy maker Apitor has faced a $500,000 civil penalty from the Federal Trade Commission (FTC) for violating the Children's Online Privacy Protection Act (COPPA). The company, unable to pay, has seen the penalty suspended. It is accused of collecting geolocation data from minors aged 6-14 without parental consent via its mobile app.
Apitor's app required location sharing for Android users, enabling a third-party, JPush, to gather and use minors' location data secretly. The FTC, aggressively enforcing COPPA, has previously fined Disney $10 million for similar violations. The Justice Department filed a complaint against Apitor for its COPPA breach. Despite claiming COPPA compliance in its privacy policy, Apitor failed to obtain parental consent for data collection. The FTC's Bureau of Consumer Protection director stressed the importance of parental notice and consent for minors' data collection. The proposed settlement order requires Apitor to delete the collected data unless it obtains parental consent.
Apitor's penalty, though suspended due to its claimed inability to pay, stands as a reminder of the seriousness of COPPA violations. The FTC's aggressive enforcement ensures companies comply with rules protecting minors' online privacy.
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