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."
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$106.8M
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