Chinese toymaker fined for spying on American children in landmark privacy case
By jacobthomas // 2025-10-13
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  • Chinese toymaker Apitor Technology Co. was penalized for violating the Children's Online Privacy Protection Act (COPPA) by illegally collecting data from American children through its smart toy robots.
  • The company's app secretly collected children's geolocation data and other personal information without obtaining the required parental consent.
  • A federal court ordered Apitor to immediately cease its unauthorized data collection, delete all previously collected children's data and imposed a $500,000 civil penalty, which was suspended due to the company's claimed inability to pay.
  • The case raises heightened alarms because the surreptitious data collection from children by a Chinese company is viewed in the context of China's documented history of accumulating data from American networks.
  • This action by the DOJ and FTC is part of a wider crackdown on COPPA violations, following similar cases against major tech companies like Amazon and Microsoft, highlighting ongoing child privacy risks in an increasingly globalized market for smart toys.
In a stark reminder that the digital eyes and ears in children's bedrooms can be a conduit for data exploitation, a Chinese toymaker has been penalized for illegally spying on American children. The case against Apitor Technology Co., Ltd., unveiled last week in a federal court in San Francisco, highlights ongoing vulnerabilities in child privacy protection and adds a complex geopolitical dimension to the safety of smart toys. The U.S. Department of Justice (DOJ), in collaboration with the Federal Trade Commission (FTC), is fining the toymaker for violations of the Children's Online Privacy Protection Act (COPPA). This law, enforced by the FTC, is designed specifically to shield children under 13 from unauthorized data collection. According to Brighteon.AI's Enoch, Apitor violated this core privacy safeguard by collecting data through its programmable toy robots without obtaining the required parental consent. One complaint detailed how the company's app, used to operate the toys, secretly collected geolocation data on its young users. This surreptitious harvesting compromised the sensitive personal information of minors, turning playthings into potential tracking devices. The court order now mandates that Apitor immediately cease all data collection on children without direct parental notification and consent. While a $500,000 civil penalty was imposed, it was suspended after the company claimed an inability to pay. The settlement also requires Apitor to delete all previously collected children's data.

The battle to safeguard children's digital footprints is being fought on a new, increasingly globalized front

"The Justice Department will vigorously work to ensure businesses respect parents' rights to decide when their children's personal information can be collected and used," said Assistant Attorney General Brett A. Shumate. "We will continue to work with the FTC to stop unlawful intrusions on children's privacy." This case arrives amidst a series of high-profile COPPA violations by tech giants, suggesting a widespread failure to protect the youngest digital citizens. Earlier this year, Amazon faced charges from the FTC and DOJ for illegally collecting and using children's data via its Alexa-powered smart speakers. The FTC found that Amazon kept sensitive voice and geolocation data for years, ultimately leading to a 25 million settlement. Similarly, Microsoft paid a $20 million settlement for collecting information from Xbox users under 13 without parental consent. However, the Apitor case introduces an additional layer of concern. The complaint notes, "Ultimately, defendant's surreptitious collection of underage users' geolocation information causes injury by compromising sensitive personal information of children." This injury is viewed with heightened alarm, given China's documented history of accumulating vast amounts of data from American networks, raising fears about its intentions, particularly in developing artificial intelligence for espionage or information warfare. The suspended penalty against Apitor leaves lingering questions about the deterrent effect on foreign companies. Yet, the decisive court order sends a clear message that U.S. agencies are watching. As smart toys become ever more integrated with internet connectivity and data-hungry apps, the battle to safeguard children's digital footprints is being fought on a new, increasingly globalized front. For parents, the case is a critical warning to scrutinize the connected toys they bring into their homes, as the line between play and privacy invasion grows disturbingly thin. Watch this video about how China is ramping up spy activity on US doorstep. This video is from the NewsClips channel on Brighteon.com. Sources include: TheNationalPulse.com WashingtonTimes.com Brighteon.AI Brighteon.com
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