Google to pay $30 million to settle YouTube Children’s Privacy Lawsuit

Google has agreed to pay $30 million to settle a class action lawsuit accusing the company of illegally collecting data from children on YouTube, according to court filings cited by Reuters.

The lawsuit alleged that Google violated the Children’s Online Privacy Protection Act (COPPA), a federal law that prohibits companies from gathering personal data from children under 13 without parental consent. Plaintiffs claimed the tech giant tracked viewing habits and other information from millions of underage users watching videos on YouTube.

While agreeing to the settlement, Google denied any wrongdoing. The company has previously maintained that its practices complied with existing laws and that YouTube is not intended for users under 13, though the platform has long been popular among children.

The class action could apply to as many as 45 million people across the United States. Eligible claimants include anyone who watched YouTube while under the age of 13 between July 1, 2013, and April 1, 2020. Individual payouts are expected to be small, given the size of the class and the $30 million settlement fund.

This is not the first time Google has faced scrutiny over its handling of children’s data. In 2019, the company paid a then-record $170 million settlement to the Federal Trade Commission (FTC) and New York Attorney General over similar allegations of illegally collecting data from children to target advertising. That case also centered on COPPA violations tied to YouTube.

Advocates for stronger privacy protections say the latest settlement underscores ongoing concerns about how Big Tech handles children’s data. Despite previous enforcement actions, critics argue that companies continue to exploit loopholes in the law to monetize younger users’ online activity.

Google has in recent years introduced changes to its platforms aimed at enhancing protections for children and teenagers. These include restricting targeted advertising to under-18 users, limiting data collection, and making video uploads by minors private by default. Still, privacy watchdogs contend more robust oversight is necessary.

The settlement must be approved by a judge before payouts can be distributed. If finalized, it could mark another costly chapter in Google’s long-running battles over data privacy, particularly when it comes to young users on YouTube which is the world’s largest video-sharing platform.