YouTube Fined US $ 170 Million for Collecting Children's Data | Mempawah Satu

YouTube Fined US $ 170 Million for Collecting Children's Data

08 September 2019, 1:50 AM
The US Federal Trade Commission (FTC) says YouTube is accused of tracking users from children's channels using cookies without parental consent. 
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MEMPAWAHSATU.ME - The company uses cookies to target millions of dollars in advertisements installed on its users.

Google and YouTube will pay US $ 170 million to resolve allegations that they violate federal law by collecting children's personal information.

The US Federal Trade Commission (FTC) says YouTube is accused of tracking users from children's channels using cookies without parental consent.

The company uses cookies to target millions of dollars in advertisements installed on its users.

This has been the biggest violation since a law banning the collection of information on children under the age of 13 came into force in 1998.

This law was revised in 2013 with the addition of the issue of cookies used to track a person's internet usage habits.

YouTube says, in 4 months, the company will assume that all who watch children's content on YouTube are children.

"This means we will limit the collection of data and its use on children's videos to support the operation of the service," YouTube wrote in its blog, as quoted by Reuters on Wednesday (9/4).

When compared to company revenue, the fine is small. Alphabet, which is the parent company of Google and YouTube, recorded revenues of US $ 38.9 billion in quarter II / 2019.

Alphabet generates around 85 percent of the company's total revenue derived from sales of space and advertising technology In addition to fines, the proposed settlement requires companies to create a system that can identify content intended for children.

In addition, the system is also expected to be able to notify the owner's channel about their obligation to get parental consent before collecting information about children.

FTC Chairman Joe Simons at a press conference Wednesday (4/9) said this would drive important changes to YouTube's business practices.

"No other company in America is subject to these types of requirements and this will make a significant change to the costs on YouTube," he said.

The Director of the FTC Consumer Protection Bureau Andrew Smith said that the settlement of US $ 170 million was based on revenue from data collected.

"Approximately US $ 170 million is the Consumer Protection Bureau budget for 1 year," he said.

After the settlement is done, the FTC plans to search the YouTube platform to determine whether there is still content directed to children regarding the collection of personal information.

In late August, YouTube announced it would launch YouTube Kids separately, aimed at children according to their age.

This new platform is designed without any annoying videos, including advertisements that are displayed based on records of user behavior.

Translated from the website www.bisnis.com

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