Alphabet Gets Slapped on the Wrist for Violating Children's Privacy Law

Edward Kim  |

iStock.com/fizkes

As part of a settlement with the Federal Trade Commission (FTC) and the State of New York’s Attorney General's office, Alphabet [ (GOOG),  (GOOGL)] agreed to pay a $170 million fine for violating the Children’s Online Privacy Protection Act (COPPA), the federal law that prohibits online services from collecting personal data from children under 13 without a parent’s verified consent.

In a series of Twitter posts today, Senator Ed Markey (D-MA) excoriated the FTC for letting Alphabet and its subsidiaries off so lightly.

The settlement calls for Alphabet to pay $136 million to the FTC and $34 million to New York.

In the latest 12 months ended June 30, 2019, Alphabet had net income of $34.7 billion on revenue of $148.3 billion, with $121.1 billion in cash, cash equivalents and marketable securities.

As Sen. Markey stated, the FTC failed miserably in this settlement. The only message that Alphabet executives heard was that the company can continue to violate the law with impunity and continue to mine children's data for profit without parental permission.

Both GOOG and GOOGL closed up 1% today.

Shame on the FTC.

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Source: Equities News

DISCLOSURE: Edward Kim is Managing Editor of Equities.com.


The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer. The author of this article, or a firm that employs the author, is a holder of the following securities mentioned in this article : None

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Symbol Name Price Change % Volume
GOOGL Alphabet Inc. 1,429.57 -36.61 -2.50 1,212,257 Trade
GOOG Alphabet Inc. 1,431.58 -35.13 -2.40 1,259,586 Trade

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