A significant legal development is underway as Google and YouTube have reached a proposed $30 million settlement in a class-action lawsuit. This suit, filed on behalf of numerous children, claims that the tech giants engaged in unauthorized data collection from minors watching YouTube videos, subsequently using this information for targeted advertising. The alleged period of this activity spans from July 2013 to April 2020, focusing on children under the age of 13. The settlement agreement, recently detailed in a federal court filing, awaits preliminary approval from a judge, with a hearing scheduled for September 23rd.
Eligibility for a portion of this settlement extends to individuals who were under 13 years old and consumed child-oriented content on YouTube during the specified timeframe. Although Google has indicated it cannot precisely identify the number of potential claimants due to the platform's nature—where users aren't always logged in and a minimum age of 13 is required for account creation—attorneys involved in the case estimate a vast claimant pool. They project between 35 million and 45 million eligible individuals, drawing from data suggesting that 40% to 50% of children within that age range watched YouTube during the period in question. Should the settlement receive approval, eligible participants could receive an average of $30 to $60, based on typical class action claim rates.
The origins of this lawsuit trace back to 2019 when both the Federal Trade Commission and the Attorney General of New York initiated actions against Google and YouTube, accusing them of violating children's privacy laws through data collection for advertising purposes. Google previously settled these governmental claims, paying $170 million without admitting fault. Following this, the current class action was launched by representatives of 34 children across 17 states, asserting that the companies' practices infringed upon the privacy rights of millions of young users. After extensive legal proceedings, including rulings and appeals, the parties engaged in mediation, leading to the $30 million figure. This sum was calculated based on an estimated $52 million in revenues Google allegedly generated from these targeted advertisements. The plaintiffs' legal team has endorsed the settlement, emphasizing that it avoids a potentially lengthy and uncertain trial process.
This settlement underscores the critical importance of protecting children's digital privacy in an increasingly interconnected world. It serves as a potent reminder for technology companies to prioritize ethical data handling practices, especially concerning vulnerable populations. For parents, it highlights the need for vigilance and awareness regarding the online activities of their children and the data collected by digital platforms. Ultimately, this case contributes to a broader movement advocating for responsible corporate behavior and stronger safeguards to ensure that innovation aligns with the well-being and fundamental rights of every individual, particularly the youngest members of our society.