VTech faces US$650,000 fine over broken data laws

Electronic toymaker VTech has been fined US$650,000 to settle charges over failure to protect the privacy of children using its gadgets.

Following a data breach in 2015, the US Federal Trade Commission (FTC) leveled the charges at VTech as it found the company had broken US data laws.

VTech gathered data on almost 650,000 children through its Kid Connect app that was placed in many of the electronic toys it makes.

Without seeking consent from parents or children, the app collected personal information.

FTC said in a statement: “As connected toys become increasingly popular, it’s more important than ever that companies let parents know how their kids’ data is collected and used and that they take reasonable steps to secure that data.

“Unfortunately VTech fell short in both of these areas.”

Written by Leah Alger