Google agreed to pay $30 million to settle claims that YouTube collected data from millions of U.S. children under 13 to target advertisements. The lawsuit alleged that the company used personal information to manipulate children into spending more time on YouTube, increasing targeted ad exposure and company revenue. Google admitted no wrongdoing and argued the case did not allege specific losses or highly offensive conduct. Plaintiffs filed suit in 2019 on behalf of 34 children from 17 states after a prior $170 million settlement with regulators. An estimated 35–45 million children would be eligible; claimants who file likely would receive at least $30. The settlement requires court approval.
Google has agreed to pay $30 million to settle a long-running lawsuit by parents and their children claiming its YouTube video app collected data from millions of U.S. kids under 13 so it could target them with ads. The Mountain View digital advertising and search giant manipulated children using their personal information into extending their time on YouTube, which in turn increased the number of targeted advertisements shown to them, and increased the revenue earned by Google,
Google admitted no wrongdoing under the settlement. However, in a court filing last year, it argued that the case failed to claim specific losses or allege the YouTube data collection went beyond routine commercial behavior into highly offensive conduct. The company, whose annual profits reported to regulators ranged from $12.7 billion in 2013 to $40.3 billion in 2020 during the period covered by the lawsuit, did not respond to questions about the lawsuit and how it currently treats data from YouTube children's videos.
Under the settlement agreement filed Aug. 18, which requires court approval, an estimated 35 million to 45 million children who were under 13 while watching children's content on YouTube between July 1, 2013, and April 1, 2020 would be eligible to receive funds. Because only a small fraction of people in such cases submit claims, lawyers for the plaintiffs calculated that those who do make claims will receive at least $30, the document said.
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