Digital Smarts - Connected Toy Company to Pay Privacy Fine

The Federal Trade Commission said online connected toy company VTech will pay a $650,000 settlement in a case in which children's email addresses and other data were gathered via online platforms called Planet VTech and apps like Kid Connect and then were hacked in November 2015. This is the FTC's first case involving toys that are connected back to the toy company online.

While both the online platform and apps are now defunct, VTech was accused of violating the Children's Online Privacy Protection Act, which requires companies to obtain parents' consent before collecting personal data about their children under the age of 13. That law also requires companies to post privacy policies that offer complete descriptions about the data that is collected and give information about reviewing or deleting that data. The children's privacy law also requires companies to use reasonable data security practices to protect personal data.