On January 8, the FTC announced that it reached a settlement with an electronic toy maker over allegations that the toy maker violated the Children's Online Privacy Protection Act. According to the complaint, the toy maker collected personal information from children and parents without providing direct notice and obtaining their parents' consent, and failed to take reasonable steps to secure the data collected. As part of the settlement, the company will pay a $650,000 fine and is required to implement a comprehensive data security program, which is subject to independent audit for the next 20 years. The FTC noted that this was its first children's privacy case involving internet-connected toys.
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