Penalty Amount
$500,000
The FTC settled allegations against Apitor Technology for violating COPPA by allowing a third party to collect geolocation data from children without parental consent. Apitor must pay a $500,000 suspended fine, delete improperly collected data, and implement measures to comply with COPPA, including obtaining parental consent and notifying parents.
Apitor is required to pay a $500,000 suspended monetary penalty, delete any personal information collected in violation of COPPA unless parental consent is obtained, notify parents before collecting data, obtain verifiable parental consent, delete data upon parental request, and retain data only as necessary. It must also ensure third-party software complies with COPPA.
In-house legal teams should review all agreements involving services directed to children or that may be used by children, including vendor/customer agreements, data processing addendums (DPAs), and privacy policies/terms of service. Specifically, scrutinize clauses related to data collection (especially sensitive data like geolocation), third-party data sharing or processing, consent mechanisms (requiring verifiable parental consent under COPPA), data retention and deletion obligations, and representations/warranties regarding COPPA compliance. Changes may be needed to: (1) explicitly prohibit collection of children's data without proper consent; (2) impose contractual obligations on third parties to comply with COPPA and provide audit rights; (3) mandate immediate deletion of improperly collected children's data; and (4) update privacy notices to accurately reflect data practices and consent requirements for child users.
Entity
Apitor Technology
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2025/09/ftc-takes-action-against-robot-toy-maker-allowing-collection-childrens-data-without-parental-consent
Apitor Complaint
https://www.ftc.gov/system/files/ftc_gov/pdf/Apitor-Complaint.pdf
Apitor JointMotion StipOrder
https://www.ftc.gov/system/files/ftc_gov/pdf/Apitor-JointMotion-StipOrder.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Apitor Technology"
"$500,000 penalty"
"COPPA"
"allowing a third party in China to collect geolocation information from children without parental consent."
The FTC sent warning letters to 12 companies offering 'nudify' tools that generate nonconsensual intimate images, for failing to comply with the TAKE IT DOWN Act (TIDA) by not providing a mechanism for victims to request removal of such content. The letters urge immediate compliance with TIDA, which requires platforms to remove nonconsensual intimate images within 48 hours of a valid request. Noncompliant companies may face future legal action and civil penalties of up to $53,088 per violation.
The FTC began enforcing the TAKE IT DOWN Act on May 19, 2026, a law requiring covered platforms to establish a process for victims to request removal of nonconsensual intimate images and delete such content within 48 hours of a valid request. The agency launched a consumer complaint portal, issued compliance guidance for businesses and consumers, and sent reminder letters to major platforms including Meta, TikTok, and X about their obligations under the law. No specific penalties or enforcement actions against individual companies were announced in this release.
$6.5M
A federal court held Cliq Inc. and its executives Andrew Phillips and John Blaugrund in civil contempt for multiple violations of a 2015 FTC order requiring the payment processor to prevent enabling consumer fraud. The court found the defendants facilitated fraud by processing transactions for high-risk merchants, avoiding fraud monitoring, failing to conduct required underwriting, and ignoring chargeback thresholds. The court imposed $6.5 million in civil contempt sanctions against the defendants.
$795.8M
The FTC and State of Nevada settled charges with lead defendants of the IM Mastery Academy MLM scheme, including Chris and Isis Terry and their affiliated companies, over false earnings claims used to promote financial training programs and a multi-level marketing venture. The stipulated order imposes a $795.8 million judgment, with defendants surrendering nearly $90 million in assets including luxury real estate, vehicles, jewelry, and a yacht, totaling over $100 million with prior judgments from other involved defendants. The order also bans defendants from selling trading-training services, prohibits false earnings claims, and restricts deceptive practices including negative-option misrepresentations and telemarketing violations.
The FTC and State of Illinois, via the Department of Justice, filed a complaint against B.E.S.T. GDR LLC (d/b/a Premium Home Service) and its owner Yosef Bernath for creating thousands of fake home repair business listings with fabricated five-star reviews to deceive consumers. The defendants allegedly routed consumer calls to unqualified representatives, arranged for unlicensed technicians, and violated the FTC Act, Reviews and Testimonials Rule, Gramm-Leach-Bliley Act, and Illinois consumer protection laws. No monetary penalty has been imposed yet as the case is in initial filing stages.
Federal Trade Commission Chairman Andrew N. Ferguson sent letters to over a dozen major technology companies reminding them of their obligation to comply with the Take It Down Act (TIDA) by May 19, 2026. TIDA requires covered platforms to establish a process for victims, including children, to request removal of nonconsensual intimate images, with takedown of content and all identical copies required within 48 hours of a valid request. The FTC also issued supplemental guidance to help companies prepare for compliance and warned that it will monitor and enforce violations of the law.