The commission had previously accused the video hosting platform of illegally tracking and targeting users under the age of 13.
Under a 1998 U.S. law, collecting information about children under the age of 13 is illegal, the law was revised in 2013 to include “cookies’’. According to the commission, YouTube abused its powers and used cookies without parental consent to create targeted advertisements for minors.
“YouTube touted its popularity with children to prospective corporate clients and when it came to complying with the federal law banning collecting data on children, the company refused to acknowledge that portions of its platform were clearly directed to kids’’ Federal Trade Commission Chairman, Joe Simons said.
According to the commission, the settlement required YouTube to notify channel owners about their obligations to get consent from their parents before collecting data on kids.
Google is also being investigated in the EU for allegedly breaching privacy laws and sharing its users’ personal information with advertisers.
The Irish data regulator that oversees Google’s Dublin-based European activities is also conducting an investigation to see whether the corporation has violated the privacy of EU citizens.