VTech to settle FTC charges of violating kids’ privacy

Reuters WASHINGTON (Reuters) — Electronic toymaker VTech has agreed to settle charges it violated a U.S. children’s privacy law by collecting personal information without providing sufficient notice of its policies or obtaining verifiable parental consent, the Federal Trade Commission said on Monday.

Hong Kong-based VTech Electronics Ltd and its U.S. subsidiary agreed to pay $650,000 to settle the charges brought by the FTC, the U.S. agency said in a statement. The two are part of Hong Kong-based VTech Holdings Ltd.

The FTC alleged in a complaint filed by the Justice Department that the Kid Connect application sold with some of VTech’s electronic toys collected personal information of hundreds of thousands of children without obtaining verifiable parental consent or providing sufficient notice of its information collection and use practices.

The firm also failed to take reasonable steps to secure the data it collected, the FTC said, and it made misleading claims about the extent to which information transmitted through its systems were encrypted to protect privacy.Speech

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