Case Intel

• Federal court order resolves allegations that China-based Apitor Technology Co. violated the Children's Online Privacy Protection Act by collecting geolocation data from children under 13 through its programmable robotic toy app
• The company faces a $500,000 civil penalty, currently suspended due to inability to pay, and must delete all previously collected children's personal information
• Apitor is permanently barred from collecting data from children without direct parental notification and verifiable consent

By Samuel Lopez | USA Herald

CALIFORNIA - The Department of Justice and Federal Trade Commission announced a stipulated court order against Apitor Technology Co., Ltd., resolving allegations that the Chinese toy manufacturer illegally collected personal information from children using its robotic toy application without parental knowledge or permission.

According to a civil complaint filed in the United States District Court for the Northern District of California, Apitor violated the Children's Online Privacy Protection Act by gathering geolocation data from children under age 13 who used the company's app to control its programmable robotic toys. The complaint alleges the company failed to notify parents or obtain their consent before collecting this sensitive information.

"The Justice Department will vigorously work to ensure businesses respect parents' rights to decide when their children's personal information can be collected and used," said Assistant Attorney General Brett A. Shumate of the Justice Department's Civil Division. "We will continue to work with the FTC to stop unlawful intrusions on children's privacy."

The Children's Online Privacy Protection Act prohibits operators of online services from knowingly collecting, using, or disclosing personal information from children under 13 unless they provide notice to and obtain consent from parents. The law aims to give parents control over what information is collected from their young children online.

Under the stipulated order, Apitor must delete all children's personal information previously collected without parental consent. The company is also permanently enjoined from collecting or using data from children without making reasonable efforts to directly notify parents and obtaining verifiable parental consent going forward.

The court imposed a $500,000 civil penalty against Apitor, though enforcement of the penalty is suspended based on the company's claimed inability to pay. The suspension could be lifted if the government later determines Apitor misrepresented its financial condition.

What's Next

The stipulated order takes immediate effect, requiring Apitor to implement compliant data collection practices and complete deletion of improperly collected children's data. The company must establish procedures for parental notification and consent verification for any future collection of personal information from children under 13. The suspended civil penalty remains subject to enforcement if Apitor's financial representations prove inaccurate.

Sources

• DOJ Press Release(Department of Justice, Civil Division) — justice.gov/civil/consumer-protection-branch