Court Rules
All enforcement actions
Consent DecreeMedium Risk

FTC Settles with Apitor Technology for COPPA Violations

Apitor TechnologySeptember 3, 2025Federal Trade Commission

Penalty Amount

$500,000

Summary

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.

Remedy

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.

Monetary PenaltyData DeletionCompliance ProgramCorrective Notice

Contract Impact

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.

Contract Search Terms

parental consent mechanismthird-party data sharing clausegeolocation data collectionCOPPA compliance clausechildren's personal informationdata processing addendumverifiable parental consentdata retention and deletion policyservice provider agreementprivacy policy (children's section)

Laws Cited

COPPA

Violation Types

Entity Details

Entity

Apitor Technology

Industry

Technology

Official Sources

Source Evidence

Entity Name
"Apitor Technology"
Fine Amount
"$500,000 penalty"
Laws Cited
"COPPA"
Violation Types
"allowing a third party in China to collect geolocation information from children without parental consent."

Related Enforcement Actions

FTC

CMG Media Corporation

$930K

The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.

FTC

Federal Trade Commission

The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.

FTC

Chase Nissan LLC

$4.0M

The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.

FTC

Credit Glory LLC

The FTC filed a complaint against Credit Glory LLC and related entities for deceptive credit repair practices, including false promises, impersonating debt collectors, charging illegal upfront fees, and using negative option billing without consent. A federal court temporarily halted the operation.

FTC

Federal Trade Commission

The FTC issued a policy statement abandoning disparate-impact liability, stating it will no longer bring claims based on this theory. It also modified compliance obligations for several companies based on past decisions.

FTC

Hims & Hers

The FTC, along with Utah and California, filed a complaint against Hims & Hers alleging the telehealth provider shared consumers' sensitive health information with third-party advertising platforms without consent, and deceived consumers about billing and cancellation practices. The complaint alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act.