Google settles YouTube children’s privacy lawsuit for $30M

Google has agreed to pay $30 million to settle a lawsuit alleging that it violated the privacy of children using YouTube by collecting personal information without their parents’ permission and using that data to deliver targeted advertising.

The lawsuit was initiated by the parents or guardians of 34 children, who accused Google of violating dozens of state privacy laws, including the Children’s Online Privacy Protection Act (COPPA).

COPPA requires tech companies to obtain parental consent before collecting and using personal information from children under the age of 13. Instead, Google baited children with cartoons, nursery rhymes, and other child-friendly content to collect personal information for providing targeted ads.

In 2019, Google’s parent company, Alphabet, agreed to pay $170 million in fines to settle a case brought by the Federal Trade Commission (FTC) regarding a similar dispute. According to the plaintiffs in this case, even after the 2019 settlement, Google continued to violate various laws by collecting personal information from underage children.

Google is willing to settle the current lawsuit by paying a $30 million settlement. Google denies any wrongdoing in the preliminary settlement, which was filed on Monday in the San Jose, California, federal court. To finalize the deal, the tech company requires approval by US Magistrate Judge Susan van Keulen.

According to Reuters, the proposed class covers U.S. children under 13 who watched YouTube between July 1st, 2013, and April 1st, 2020, which could encompass between 35 and 45 million class members.

Lawyers estimate that if 1 to 2 percent submit a claim, they could be rewarded between $30 and $60 each, before deducting legal fees and costs. The lawyers plan to seek up to $9 million from the settlement for legal fees.

Alphabet had revenues of nearly $187 billion in the first half of this year.