Google to pay $30M to settle YouTube kids' privacy lawsuit - report

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5./15 WEST

Alphabet's (NASDAQ:GOOG [https://seekingalpha.com/symbol/GOOG]) (NASDAQ:GOOGL [https://seekingalpha.com/symbol/GOOGL]) Google will pay $30M to settle a lawsuit claiming it breached the privacy of children using YouTube by collecting their personal information without parental consent, Reuters reported.

On Monday night, a preliminary settlement of the proposed class action was filed in San Jose, California, federal court and needs approval by U.S. Magistrate Judge Susan van Keulen, the report added.

Google denied wrongdoing in agreeing to settle, according to the report.

Google did not immediately respond to a request for comment from Seeking Alpha.

In 2019, Google agreed to pay $170M in fines and change some practices to settle similar charges by the U.S. Federal Trade Commission and New York Attorney General Letitia James, the report noted.

The parents or guardians of 34 children alleged that Google violated dozens of state laws by letting content providers bait children with cartoons, nursery rhymes and other content to help it collect personal information, even after the 2019 settlement, the report added.

Van Keulen dismissed claims against the content providers, including Hasbro (HAS [https://seekingalpha.com/symbol/HAS]), Mattel (MAT [https://seekingalpha.com/symbol/MAT]), Cartoon Network (WBD [https://seekingalpha.com/symbol/WBD]), and DreamWorks Animation (CMCSA [https://seekingalpha.com/symbol/CMCSA]) in January, citing a lack of evidence tying them to Google's alleged data collection, according to the report.

Mediation began the following month, leading to the settlement.

The proposed class covers U.S. children under 13 years of age who watched YouTube between July 1, 2013 and April 1, 2020.

Lawyers for the plaintiffs said there could be 35 million to 45 million class members. They noted that if 1% to 2% file claims, a rate comparable to similar earlier cases, claimants could get $30 to $60 each before deducting legal fees and costs, the report added.

The lawyers are eyeing up to $9M in legal fees from the settlement.

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