FTC Takes Action Against Robot Toy Maker for Allegedly Sending Children’s Info to China

The company did not ensure that parental consent was secured before allowing the collection of children’s data, according to a lawsuit filed by the government.

The Federal Trade Commission in Washington on Nov. 18, 2024. Madalina Vasiliu/The Epoch Times

The Federal Trade Commission (FTC) has taken action against a robot toy maker that sold its products in the United States via online retailers such as Amazon for allegedly allowing a third party from China to collect children’s data, the agency said in a Sept. 3 statement.

The company, Apitor Technology Co., based in Shenzhen, China, develops and sells programmable robot toys targeting children ages 6 to 14, according to a Sept. 2 lawsuit filed by the Justice Department in the U.S. District Court for the Northern District of California. The app-enabled toys were promoted as educational devices for teaching children coding skills, according to the lawsuit.

According to the lawsuit, on Amazon’s webpages for the toys, the company encourages consumers to download the free companion mobile app, called Apitor Kit, on their Android or iOS devices.

“It allows children to program and control Defendant’s robot toys, and downloading it is necessary to remotely control the toys,” the lawsuit stated.

According to the FTC, Apitor included a third-party software development kit in its app, which allegedly allowed the software’s Chinese developer to collect location data. Data collection begins after users enable location permissions in the app, transmitting the locations to the developer’s internet servers.

The complaint stated that at no point did Apitor disclose to users that its app allows a third party to collect their geolocation information.

“Defendant’s failure to provide notice and obtain parental consent to its practices subjects underage consumers to ongoing harm and deprives parents of the ability to make an informed decision about the collection of their children’s location information,” the lawsuit stated.

According to the lawsuit, Apitor “failed to comply with the [Children’s Online Privacy Protection Act] parental notice and consent requirements.”

The Children’s Online Privacy Protection Act (COPPA) requires websites, apps, and other online services directed at children younger than age 13 to notify parents about the personal data they collect and obtain verifiable parental consent before collecting such information.

The Epoch Times reached out to Apitor for comment but did not receive a response by publication time.

In its statement, FTC said a proposed settlement order has been drafted with Apitor, requiring the company to ensure that any third-party software it uses strictly abides by COPPA regulations. Apitor will be required to delete the personal information it has collected to date, unless the company secures parental consent.

Henceforth, the defendant must notify parents before collecting data of children younger than age 13, the FTC stated, noting that the company must delete a child’s data once parents request that the company do so.

While the proposed order imposes a penalty of $500,000, the fine was suspended “because of the company’s inability to pay,” the agency stated.

“Apitor will be required to pay the full amount if it is found to have lied about its finances,” the FTC stated.

Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said, “COPPA is clear: Companies that provide online services to kids must notify parents if they are collecting personal information from their kids and get parents’ consent—even if the data is collected by a third party.”

FTC’s complaint against Apitor is one of the latest actions the agency has taken against companies for COPPA violations.

On Sept. 2, the FTC said Disney has agreed to pay $10 million to settle a COPPA breach allegation.

The company was accused of not properly labeling some of the videos uploaded to YouTube as “Made for Kids.” When videos are marked as “Made for Kids,” YouTube disables features such as user data collection.

The mislabeling allowed Disney to collect personal data of children younger than 13 and use that information for targeted advertising, according to the FTC.

A Disney spokesperson said the agency’s action was limited to only some of the content uploaded to YouTube.

“Disney has a long tradition of embracing the highest standards of compliance with children’s privacy laws, and we remain committed to investing in the tools needed to continue being a leader in this space,” the spokesperson said.

In August 2024, the FTC sued TikTok and its parent company ByteDance for COPPA violations, alleging that they collected personal information on children younger than age 13 without parental consent.

Reuters contributed to this report.