YouTube has been fined $ 150 million and $ 200 million for collecting data on children under the age of 13 without permission from their parents. The fine results from an investigation last year when the parents asked the US Federal Trade Commission (FTC) to check whether the platform had the right.
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In addition, the FTC concluded that a specific law, Online Privacy Protection for Children (COPPA), had been circumvented. It includes a ban on using child data for targeting ads. This can complicate things a little bit. The financial success of YouTube is partly due to the scheduling of targeted ad serving, thanks to the large database and the search engine platform.
The sale of video ads generated a lot of money for Alphabet, owner of YouTube and Google. The streaming platform is the second source of profit. The research company Loup Ventures also estimates that 5% of YouTube’s annual sales, about $ 750 million a year, come from content intended for children.
The news of the fine comes a few days after the arrival of his own website for YouTube Kids, which was already available as an application on the Google Store. On the site, parents can choose the type of content that their children can watch, especially based on age segmentation. This can be a way to mitigate allegations about exposure to adult content on the platform.
At the same time, YouTube is trying to diversify its content with its own productions at Netflix.