According to a report by Politico, Google has agreed to pay anywhere between $150 million and $200 million in a deal that was approved through a 3-2 vote. After gaining FTC approval, the settlement would go on to the U.S. Justice Department for review. Advocacy group The Center for Digital Democracy said in a statement that the proposed settlement would be "woefully low" given Google's size and revenue, and called on the FTC to "enjoin Google from committing further violations" of children's privacy law.
The FTC has been reportedly investigating YouTube for violating a law created to protect kids online.
The Act makes sure that children's rights are not violated online.
Details about other terms of the settlement were not immediately available, the report said. The video site has also reportedly chose to stop running targeted advertising in videos aimed at kids. The online library for Musical.ly - now known as TikTok - features music popular with kids.
The settlement with the world's largest video service represents the most significant USA enforcement action against a big technology company in the past five years over practices involving minors.
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Alphabet Inc.'s (GOOGL:UN) Google doesn't break out sales for the video site, but the company recently reported that YouTube is the second-largest source of revenue behind search advertising.
Senator Edward Markey of MA, who wrote COPPA, said the money isn't the incentive so much as ensuring companies don't get the jump on gathering data on children before they're old enough to consent. "Once again, this FTC appears to have let a powerful company off the hook with a nominal fine for violating users' privacy online,"stated Sen. We owe it to kids to come down hard on companies that infringe on children's' privacy and violate federal law".
The FTC's investigation into YouTube reportedly looked into how YouTube collects data to serve personalized ads.