Apitor subjected to $500K FTC fine over unconsented children’s data collection

China-based toy manufacturer Apitor Technology was proposed by the Federal Trade Commission to pay a $500,000 penalty after allegedly permitting a Chinese third-party to obtain children's geolocation data without parental consent, which violates the Children's Online Privacy Protection Rule, reports The Record, a news site by cybersecurity firm Recorded Future.

While the fine has been suspended due to Apitor's inability to pay, such a penalty will be imposed should the firm be discovered to be falsely representing its finances, according to the FTC, which also proposed that the company delete all information secured without appropriate consent.

Such action comes just a day after Disney was ordered to pay $10 million over COPPA violations related to children's data gathering for targeted advertising.

"COPPA is clear: Companies that provide online services to kids must notify parents if they are collecting personal information from their kids and get parents' consenteven if the data is collected by a third party," said FTC Bureau of Consumer Protection Christopher Mufarrige.