Google has agreed to pay $30 million to settle a lawsuit alleging it violated children's privacy on YouTube by collecting personal information without parental consent and using it for targeted advertising. The settlement, filed in federal court in San Jose, California, still requires judicial approval. The lawsuit, brought by parents or guardians of 34 children, claims Google continued these practices even after a 2019 settlement with the FTC and New York Attorney General, which had required Google to pay $170 million and revise its data collection practices. Although the court dismissed claims against several content providers due to lack of evidence, mediation led to the current settlement. The class action covers U.S. children under age 13 who watched YouTube from July 1, 2013, to April 1, 2020. With up to 45 million potential claimants, compensation could range from $30 to $60 per person if 1–2% file claims. Plaintiffs’ attorneys plan to request up to $9 million in legal fees.
The lawsuit alleged that Google violated the Children's Online Privacy Protection Act by collecting personal information from children under 13 without obtaining verifiable parental consent. This information was then used to target advertisements, generating significant revenue for the company. The plaintiffs argued that Google's actions not only breached federal law but also exposed children to inappropriate content and advertising.
In response to the settlement, Google stated that it remains committed to protecting children's privacy and has implemented measures to comply with COPPA. The company emphasized that the settlement does not constitute an admission of liability. Google also noted that it has made changes to its data collection practices to better protect children's privacy.
The settlement amount of $30 million is intended to compensate affected children and their families. The exact distribution of funds will be determined by the court, taking into account the number of valid claims filed. The settlement also includes provisions for Google to continue its efforts to enhance children's privacy protections on its platforms.
This case highlights the ongoing challenges in regulating online platforms to protect children's privacy. As digital platforms continue to evolve, ensuring compliance with privacy laws remains a complex task. The settlement serves as a reminder to companies operating online services to prioritize user privacy, especially when it comes to vulnerable populations like children.
