San Francisco, CA – The U.S. Department of Justice, along with the Federal Trade Commission (FTC), has revealed that Apitor Technology Co., Ltd., a toy manufacturer based in China, has consented to a stipulated court order that addresses claims of unlawfully gathering children’s personal information, which breaches federal privacy regulations.
A complaint lodged in the U.S. District Court for the Northern District of California states that Apitor is accused of infringing the Children’s Online Privacy Protection Act (COPPA) by collecting geolocation data from children under the age of 13 via its mobile application—designed to operate Apitor’s programmable robotic toys—without prior notification to parents or securing verifiable parental consent, as mandated by law.
“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 Brett A. Shumate of the DOJ’s Civil Division. “We will continue to work with the FTC to stop unlawful intrusions on children’s privacy.”
According to COPPA, businesses that provide online services aimed at children are required to offer transparent privacy notices and obtain parental consent prior to gathering personal information such as names, email addresses, or location details.
The court ruling bars Apitor from collecting or utilizing children’s data in the future unless it adheres to COPPA regulations. Furthermore, it mandates the company to erase all previously gathered personal data that was collected without parental approval.
Additionally, the ruling enforces a civil penalty of $500,000, which has been put on hold due to Apitor’s financial difficulties. Nevertheless, this penalty could be reinstated if it is later determined that the company misrepresented its financial status.
