Google to Pay $30 Million Settlement Over YouTube’s Illegal Data Collection from Children: Here's What Happened

Google will pay $30 million to settle a lawsuit alleging that the company illegally gathered children's data from YouTube users. The case was brought in a San Jose, California, federal court, and it alleges that Google monitored kids under 13 without their parents' permission and used the information to provide targeted ads.

Google has denied any wrongdoing, but the company chose to settle the case to prevent an expensive and lengthy legal battle.

Who can claim compensation?

This case can impact a very large group of individuals all over the United States. Court documents estimate that as many as 45 million Americans could be entitled to a payment. This will include anyone younger than 13 while viewing YouTube videos from July 1, 2013, to April 1, 2020. Families could be able to file claims to claim a share of the settlement fund if approved, though the actual disbursements will likely be fairly small considering the huge number of possible claimants.

Why is this a Big Deal? 

The gathering of information from children under the age of 13 without permission is a clear breach of COPPA, or Children's Online Privacy Protection Act, which has existed in the US since 2000. COPPA aims to ensure that tech firms and online sites exercise special caution in safeguarding children's information.

The suit claimed that Google deliberately disregarded these regulations in a bid to generate maximum ad revenue, one of the key pillars of YouTube's business model. Though personalised adverts have become prevalent throughout the internet, kids are still a special group, and regulators cautioned technology firms for years against targeting them.

This is not the first occasion on which Google has had to pay out for infringing children's privacy. In 2019, the firm settled a record-breaking $170 million with the US Federal Trade Commission (FTC) and New York state for similar charges that YouTube unlawfully gathered children's viewing information without parental permission.

If the settlement is approved by the court, eligible families will ultimately be able to submit claims to recover damages. Further information on the claims process will be made available in the coming months.

Read More: Google Pixel 10 Series Launch Today: Expected Specs, India Prices