The U.S. Department of Justice and the Federal Trade Commission recently issued a consent decree against Chinese toy manufacturer Apitor Technology Co., Ltd., settling allegations that it illegally collected children's personal information through its programmable robot toy application without parental knowledge or consent.

According to a complaint filed in the U.S. District Court for the Northern District of California, Apitor violated the Children's Online Privacy Protection Act (COPPA) by collecting geolocation data from children under 13 using its programmable robot toy application. The complaint alleges the company failed to notify parents or obtain parental consent before collecting such sensitive information.

Brett A. Shumate, Assistant Attorney General for the Civil Division, stated: The Department of Justice is committed to ensuring businesses respect parents' decisions regarding the collection and use of their children's personal information, and we will continue working with the Federal Trade Commission to stop violations that harm children's privacy."

The Children's Online Privacy Protection Act explicitly prohibits online service providers from knowingly collecting, using, or disclosing personal information from children under 13 without parental notification and consent. This law empowers parents to control the collection of their young children's online information.

Under the settlement order, Apitor must delete all children's personal information previously collected without parental consent and is permanently barred from collecting or using children's data without taking reasonable steps to directly notify parents and obtain verifiable parental consent.

The court imposed a $500,000 (approximately RMB 3.62 million) civil penalty on Apitor, but suspended enforcement based on the company's claim of inability to pay. Should subsequent investigations confirm the company misrepresented its financial status, this suspended penalty will be reinstated.

The order takes immediate effect, requiring Apitor to implement compliant data collection practices and permanently delete all improperly collected children's data. The company must establish parental notification and consent verification mechanisms for any future collection of personal information from children under 13. If Apitor's financial statements are found to be false, the suspended civil penalty will be reinstated.