YouTube to Pay $170 Million Fine for Collecting Data on Children

Google, owned by Alphabet, the company that oversees all of Google\’s activities, is in trouble in the United States . According to authorities in the country, YouTube is collecting too much personal data on children, which could put them at risk.
The Federal Trade Commission has already proposed a $170 million fine. YouTube is accused of using cookies to track viewers of children\’s channels without parental consent and targeting millions of dollars worth of advertising.
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The penalties in this case are the highest ever and are based on a 1998 law that prohibits the collection of information on children under the age of 13. This law was amended in 2013 to include cookiesused to track Internet browsing habits. The New York Attorney General\’s Office will also receive $34 million of the total amount.
Will this hurt Google?

Google will basically not even register this hefty fine. This is because its parent company, Alphabet, derives more than 85% of its revenue from online advertising. The company sells ad space and advertising technology in its services and search engine, including analytic tools, and reported total revenue of $38.9 billion in the second quarter of 2019 alone.
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YouTube has already stated that it has extensively processed all data collected from children\’s channels over a four-month period as if it came from the children themselves. The portal will continue to collect data from children\’s channels, but only to improve its services, not for ad targeting.
In addition to monetary penalties, the proposed solution requires the company to establish a system to identify child-oriented content and to notify channel owners of their obligation to obtain parental consent before collecting information about their children.
The Federal Trade Commission announced that an amount was set in proportion to the revenue the company received from this practice. Although this is only a fraction of the actual revenues that went into the company\’s account, it is still approximately three times the budget of the Czech Statistical Office, for example.
An elegant solution
At the end of August, the video portal YouTube announced the launch of YouTube Kids, a separate area for children based on their age. The space will be designed to keep out inappropriate videos and will not contain behavior-based advertising.
However, YouTube has long worked directly with companies such as Mattel and Hasbro, for example, to target ads specifically to children ages 6-11 with greater precision than television stations can today.