PULSE POINTS

❓WHAT HAPPENED: The U.S. Department of Justice (DOJ) fined a Chinese toymaker for illegally obtaining data on American children from its robotic toys.

👤WHO WAS INVOLVED: The DOJ, the Federal Trade Commission (FTC), and Apitor Technology Co., Ltd.

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📍WHEN & WHERE: Last week in a federal court in San Francisco.

💬KEY QUOTE: “The Justice Department will vigorously work to ensure businesses respect parents’ rights to decide when their children’s personal information can be collected and used.” – Brett A. Shumate

🎯IMPACT: The court order requires Apitor to cease data collection on children without parental consent and imposed a $500,000 penalty.

The Department of Justice (DOJ), in collaboration with the Federal Trade Commission (FTC), is fining Apitor Technology Co., Ltd., a Chinese toymaker, for illegal privacy violations involving American children. The company was charged with violating the Children’s Online Privacy Protection Act by collecting data through its programmable toy robots without parental consent.

A civil complaint filed in San Francisco federal court outlined how Apitor’s app, used to operate these toys, secretly collected geolocation data on children under 13. This unauthorized data collection compromised the sensitive personal information of minors, the complaint noted.

The court order mandates that Apitor stop collecting data on children without direct parental notification and consent. Although a $500,000 civil penalty was imposed, it was suspended as the company claimed inability to pay. The agreement also requires Apitor to delete all personal data collected from children.

“The Justice Department will vigorously work to ensure businesses respect parents’ rights to decide when their children’s personal information can be collected and used,” said Assistant Attorney General of the Civil Division Brett Shumate. He added: “We will continue to work with the FTC to stop unlawful intrusions on children’s privacy.”

China has a history of accumulating vast amounts of data from American networks, raising concerns about its intentions, especially in developing AI for espionage or information warfare. In the case of Apitor, the DOJ complaint notes, “Ultimately, defendant’s surreptitious collection of underage users’ geolocation information causes injury by compromising sensitive personal information of children.”

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