5 Takeaways From The FTC's First COPPA Settlement Over Internet-Connected Toys

The Federal Trade Commission on Jan. 8 announced its first settlement of alleged violations of the Children's Online Privacy Protection Act arising from internet-connected toys. The FTC complaint against VTech followed the exposure of a data breach affecting hundreds of thousands of parents' and children's data who used VTech's connected toys. The government asserted that VTech violated COPPA by failing to provide sufficient notice to parents about the information it collects and by failing to establish and follow adequate data security practices. Requiring VTech to pay a $650,000 penalty and undergo independent, biennial assessments of the company's comprehensive data security program for 20 years, the settlement serves as a reminder to pay close attention to COPPA compliance when launching child focused internet-connected products.