FTC's YouTube Settlement Another Sign of COPPA Enforcement Heating Up
The Google-FTC settlement is the first COPPA settlement involving a third-party platform and behavioral advertising. Google was also hit with the largest COPPA fine ever.
September 11, 2019 at 11:30 AM
3 minute read
YouTube Playa Vista (Photo: Jason Doiy/ALM)
Collecting children's data for marketing purposes isn't completely restricted in the U.S., but the fiscal risks of doing so have increased significantly after Google settled with the FTC and New York Attorney General's Office for $170 million over YouTube's COPPA Rule violations.
In response, YouTube declared it will no longer show personalized ads on videos made for children. Starting in roughly four months, YouTube said it will treat data from anyone watching children's content on YouTube as coming from a child, meaning it will limit data collection on child-targeting videos to what is needed to "support the operation of the service."
The settlement, the stiffest fine in COPPA's history, may be another sign of the FTC becoming more assertive in protecting children's data. The settlement arrives six years after the FTC updated its COPPA Rule requiring parental consent when collecting underage children's data for behavioral advertisements and deeming third parties liable if they have "actual knowledge" that it's collecting personal information from users of a child-directed site or service.
"This is the first FTC settlement that dealt with behavioral advertisements against a platform that just hosts third-party content," said Lindsey Tonsager, a Covington & Burling partner.
And with a $170 million judgment, its price tag sticks out as the largest penalty under COPPA. Still, lawyers note the settlement doesn't change COPPA's data collection requirements.
"If you continue with behavioral advertising, you would have to serve the parents with notice and seek their affirmative consent before engaging in behavioral advertisements," said Phyllis Marcus, a Hunton Andrews Kurth partner and former FTC division of advertising practices chief of staff.
Although Google's settlement doesn't represent a sea change in what companies are allowed to do with children's data, Tonsager said the order sent a "warning message" to third-party partners. In FTC chairman Joseph Simons' separate statement, he noted the settlement included a first impression application of COPPA where a third-party platform that has actual knowledge it's collecting personal information from users of a child-directed site is liable under COPPA.
Marcus said third parties may adjust what type of information they obtain to avoid that liability. "They may look at what information they are collecting on kid-related properties and maybe tighten up some of the criteria," she said.
Along with extending COPPA liability to third parties, the FTC chairman also noted the complaint alleges channels on a general audience platform are websites or online services under COPPA, another first impression application of the law.
Aside from the recent settlement, the FTC is also stressing enforcing children's data privacy by reminding state attorneys offices that they too have the power to bring child data privacy litigation. Tonsager noted FTC Commissioner Rebecca Kelly Slaughter's statement "really encouraged state attorneys to continue bringing COPPA suits as the state attorney alone when the FTC couldn't get relief."
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTrending Stories
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250