NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business

YouTube could be fined billions for 'illegally collecting data on children under 13'

By Ellie Zolfagharifard
Daily Mail·
9 Apr, 2018 11:08 PM6 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

YouTube is being accused of breaching the Children's Online Privacy Protection Act. Photo / 123RF

YouTube is being accused of breaching the Children's Online Privacy Protection Act. Photo / 123RF

YouTube is being accused of violating laws designed to protect children's privacy online.

A complaint to the Federal Trade Commission is set to be filed today by a coalition of nearly two-dozen campaign groups, according to the Daily Mail.

They claim YouTube is in breach of the US Children's Online Privacy Protection Act because is collecting personal data to target advertising to those aged under 13.

YouTube could be fined billions of dollars if the complaint is upheld.

It comes in the wake in the wake of the scandal that has engulfed Facebook over the leak of up to 87 million users' details to Cambridge Analytica.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Read carefully through the fine print of YouTube's terms of service and you might notice that you've affirmed you are old enough to watch it.

"If you are under 13 years of age, then please do not use the service," the terms say. "There are lots of other great web sites for you."

It's a warning that goes unheeded by millions of children around the world who visit YouTube to watch cartoons, nursery rhymes, science experiments or videos of toys being unboxed.

Advertisement
Advertise with NZME.

In a formal complaint, child advocates and consumer groups are asking the Federal Trade Commission to investigate and impose potentially billions of dollars of penalties on Google for allegedly violating children's online privacy and allowing ads to target them.

"Google profits handsomely from selling advertising to kid-directed programs that it packages," said Jeff Chester, director of the Center for Digital Democracy, one of the groups that drafted the complaint.

"It makes deals with producers and distributors of kids' online programs worldwide. Google has built a global and very lucrative business based on kids' deep connections to YouTube."

YouTube's business model relies on tracking IP addresses, search history, device identifiers, location and other personal data about its users so that it can gauge their interests and tailor advertising to them.

Discover more

Opinion

#YouNext: Prepare for more skeletons in the NZ business closet

09 Apr 08:00 PM
Business

Big Read: Sharing economy hurtling ahead of NZ laws

09 Apr 09:46 PM
Business

Businesses remain pessimistic as worries over govt persist

09 Apr 09:52 PM
Employment

How to answer 'dreaded' interview question

09 Apr 11:29 PM

But that model isn't supposed to work for US children, who are protected by the Children's Online Privacy Protection Act.

That's a 20-year-old law that prohibits internet companies from knowingly collecting personal data from kids under 13 without their parents' consent.

The coalition accuses YouTube of violating COPPA and deliberately profiting off luring children into what Chester calls an "ad-filled digital playground" where commercials for toys, theme parks or sneakers can surface alongside kid-oriented videos.

YouTube said in an emailed statement that it "will read the complaint thoroughly and evaluate if there are things we can do to improve.

"Because YouTube is not for children, we've invested significantly in the creation of the YouTube Kids app to offer an alternative specifically designed for children."

That toddler-oriented YouTube Kids app, launched in 2015, offers more parental controls but is not widely used - and uses the same videos and channels that kids can also find on the regular YouTube service.

Advertisement
Advertise with NZME.

Although it's not known if the FTC will take action, the complaint comes at a time of increased public scrutiny over the tech industry's mining of personal data and after the FTC opened an investigation last month into Facebook's privacy practices.

"It seems like (the FTC) may be more reinvigorated and ready to take these issues seriously," said Josh Golin, director of the Campaign for a Commercial-Free Childhood, which drafted the complaint along with the Center for Digital Democracy and a Georgetown University law clinic.

Several other groups have signed on, including Common Sense Media, which runs a popular website for families, and the advocacy division of Consumer Reports.

"I think the day of reckoning has arrived," said US Senator Edward Markey, a Massachusetts Democrat who co-authored COPPA in the 1990s and says he wants the FTC to look into the YouTube complaint.

"Americans want to know the answers as to whether or not the privacy of their children is being compromised in the online world."

FTC spokeswoman Juliana Gruenwald Henderson said in an email that the agency hasn't yet received the letter but looks forward to reviewing it.

Advertisement
Advertise with NZME.

The complaint was originally scheduled to be filed last week but was delayed after the shooting on Tuesday at YouTube's California headquarters.

"We take enforcement of COPPA very seriously and have brought more than two dozen COPPA cases since the COPPA rule was enacted," she said.

The FTC's investigations aren't usually public, but it has previously settled child privacy cases with Yelp, mobile advertising network inMobi and electronic toy-maker VTech.

None of those platforms are as popular for kids as YouTube, which has toddler-themed channels with names like ChuChuTV nursery rhymes, which as of last week counted more than 16 million subscribers and 13.4 billion views.

It also has more personality-driven programs that cater to preteens.

A former FTC attorney who now advises companies on COPPA compliance said a case against YouTube would not be straightforward because it's a general-audience service, making it hard to tell if parents are curating content for their kids to watch or letting them use it on their own.

Advertisement
Advertise with NZME.

Kandi Parsons said the FTC hasn't yet set its targets on kid-directed channels within broader media websites, though that doesn't mean it won't.

"If the FTC thought that a service was directed to children and it was delivering online targeted advertising without consent, that could be a violation," Parsons said. She said the FTC could send Google a civil subpoena seeking more information, and also use other techniques to find out how the service is tracking its users.

Advocates say Google knows what it is doing.

They point to its "Google Preferred" program that allows advertisers on YouTube to pay a premium to get their ads on the most popular videos.

The program includes a "Parenting & Family Lineup" that has featured channels such as ChuChu TV, Fox's BabyTV and Seven Super Girls, whose topics include "fluffy unicorn slime."

YouTube does "age-gate" to block children who identify themselves as under 13 from starting an account that allows users to post videos, but an account isn't needed to watch videos on the platform.

Advertisement
Advertise with NZME.

"It's laughable if Google execs claim that they think the parent is in charge of the online viewing behaviors of tens of millions of children," Chester said.

"Children are watching this content by themselves. Google is trying to look the other way."

Chester, who helped create COPPA in the 1990s, said he's confident that the FTC will take a serious look after years of letting Google off the hook for pretending that kids weren't using YouTube.

"They created a successful model monetising kids' data on YouTube and really did not want to think about the consequences," he said. "Google is one of those companies that has failed to address its ethical dilemmas in a serious way."

- Additional reporting from AP

Save

    Share this article

Latest from Business

Media InsiderUpdated

TVNZ boss on the future of the 6pm news, Shortland Street - and a move into pay TV

19 Jun 06:29 AM
Premium
Shares

Market close: GDP beats forecasts but NZ sharemarket dips

19 Jun 06:24 AM
Premium
Business

Innovation milestone: NZ approves lab-grown quail for consumption

19 Jun 04:34 AM

Audi offers a sporty spin on city driving with the A3 Sportback and S3 Sportback

sponsored
Advertisement
Advertise with NZME.

Latest from Business

TVNZ boss on the future of the 6pm news, Shortland Street - and a move into pay TV

TVNZ boss on the future of the 6pm news, Shortland Street - and a move into pay TV

19 Jun 06:29 AM

Will this be Simon Dallow's swansong year as the 6pm newsreader?

Premium
Market close: GDP beats forecasts but NZ sharemarket dips

Market close: GDP beats forecasts but NZ sharemarket dips

19 Jun 06:24 AM
Premium
Innovation milestone: NZ approves lab-grown quail for consumption

Innovation milestone: NZ approves lab-grown quail for consumption

19 Jun 04:34 AM
$162k in cash, almost $400k in equipment seized in scam crackdown last year

$162k in cash, almost $400k in equipment seized in scam crackdown last year

19 Jun 04:29 AM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP