Google Settles YouTube Kids Privacy Case for $30 million

This article first appeared on GuruFocus.

Alphabet's Google (NASDAQ:GOOG) has agreed to pay $30 million to settle a long-running lawsuit accusing YouTube of collecting kids' personal data without parental consent. The deal, filed in federal court in San Jose, still needs a judge's approval, but it could finally put years of legal wrangling to rest. Google hasn't admitted wrongdoing but said it would settle to move forward.

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The case was brought by parents who argued YouTube kept tracking children through cartoons and nursery rhymes even after Google's $170 million privacy settlement with regulators back in 2019. Claims against content partners like Hasbro (NASDAQ:HAS), Mattel (NASDAQ:MAT), Cartoon Network (NASDAQ:WBD), and DreamWorks (NASDAQ:CMCSA) were tossed earlier this year, leaving Google as the main target.

The settlement could apply to as many as 45 million U.S. children under 13 who used YouTube between 2013 and 2020. Lawyers estimate eligible families could receive about $30 to $60 each if 1% to 2% of them file claims, with attorneys eyeing up to $9 million in fees.

For Google, the payout is small change, but it highlights how privacy risks especially around kids remain a thorny issue for Big Tech.

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