Google to pay $30 mln for YouTube's children privacy lawsuit

Google has agreed to pay $30 million to settle a lawsuit accusing it of violating the privacy of children using YouTube.

According to a report by Reuters, the case alleged that the company collected personal information from under-13 users without parental consent and used it to target ads, despite a 2019 settlement where Google had promised to change its practices.

The proposed class action settlement was filed on Monday in federal court in San Jose, California, and is pending approval from US Magistrate Judge Susan van Keulen. Google denied any wrongdoing in agreeing to the deal, states the report.

The lawsuit was brought by the parents and guardians of 34 children, who said YouTube videos such as cartoons and nursery rhymes were used to lure children into sharing personal data. The proposed class covers US children under 13 who watched YouTube between July 2013 and April 2020.

As per the report, lawyers for the plaintiffs estimate there could be 35 to 45 million eligible members. They said if only 1% to 2% of families submit claims, payouts could range between $30 and $60 each, before deducting legal costs.

Earlier this year, Judge van Keulen dismissed claims against content providers including Hasbro, Mattel, Cartoon Network, and DreamWorks Animation, saying there was no evidence tying them to Google's alleged practices. Mediation began shortly after, resulting in the settlement, adds the report.

The agreement comes six years after Google and its parent company Alphabet paid $170 million in fines to the US Federal Trade Commission and New York Attorney General over similar charges. Critics at the time said that the penalty was too small to deter violations, further adds the report.