YouTube at gunpoint: human rights organizations demand a large-scale investigation from the FTC

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The record fine in 2019 doesn't seem to have been a lesson for Google. How will the company be punished this time?

Four nonprofit organizations that advocate for protecting children's online privacy have asked the US Federal Trade Commission (FTC) to investigate YouTube's activities. This comes after the company published two reports indicating that YouTube is still using personalized ads in videos aimed at children.

Child protection groups insist that the FTC should urgently launch an investigation into YouTube's data collection and advertising practices. Otherwise, there is a risk that YouTube may continue to illegally collect data from millions of children in violation of the Children's Online Privacy Act (COPPA) and the Federal Trade Commission Act.

The first report with accusations against YouTube was published by Adalytics. It was confirmed by research from the Fairplay group, one of the authors of the letter to the FTC. Both groups conducted ad campaigns to test whether YouTube actually blocks personalized ads on children's channels. Both reports showed that Google and YouTube allow and report behavioral targeting in videos for children, although this is prohibited under COPPA.

A Google spokesperson said the reports are based on a "fundamental misunderstanding of how advertising works," and the company itself does not allow personalization of ads in videos for children.

However, child advocates have serious doubts about the veracity of Google's claims. After conducting targeted advertising campaigns, Fairplay recorded 1,446 cases of behavioral advertising on children's channels. With COPPA compliance, such cases should not have occurred in principle.

This data represents only a small part of the large-scale problem of children's privacy on YouTube, which requires strict measures from the FTC, according to the authors of the letter, which include the Center for Digital Democracy, the Electronic Privacy Information Center, Common Sense Media and Fairplay mentioned earlier.

YouTube is currently under close surveillance by the FTC. In 2019, the company paid a record fine of $ 170 million for such cases, just for violating the Children's Privacy Act. However, activists now suspect that a new FTC investigation could lead to a fine of tens of billions of dollars if COPPA violations are discovered on a million-dollar scale.

If it is proved that Google and YouTube violate COPPA and ignore the agreement with the FTC, the commission should impose the most severe penalties, the authors of the letter believe. They recommend banning YouTube from monetizing data about children and moving all videos for children to a separate YouTube Kids platform.

Google has so far declined to comment on the allegations. The FTC must decide whether to conduct a full investigation of YouTube's activities, given the company's repeated violations of children's privacy. The FTC's decision will be crucial in the course of this case.
 
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