Google LLC Wednesday agreed to pay a record $170 million penalty and make compliance changes after violating children's privacy rights. But one regulator said the settlement didn't go far enough and urged attorneys general nationwide to sue the company.

"More action is needed, and I hope that our partners in state attorneys' general offices can finish the job," said a statement from Federal Trade Commission Commissioner Rebecca Kelly Slaughter, who dissented.

The Google penalty was part of a settlement with FTC general counsel Alden Abbott and New York Attorney General Letitia James. Under the deal, New York receives $34 million of the penalty.