Blog/Child Privacy Class Actions: Protecting Children's Data Online

Child Privacy Class Actions: Protecting Children's Data Online

How class action lawsuits are challenging companies that collect and misuse children's personal information without proper parental consent.

Introduction

Children today grow up in a digital world, using apps, games, social media, and educational platforms from an early age. While this connectivity offers many benefits, it also creates unprecedented privacy concerns. Many online services collect vast amounts of personal information from young users—sometimes without proper disclosure or parental consent—raising serious questions about data security, targeted advertising, and potential exploitation.

In response to these concerns, class action lawsuits targeting violations of children's privacy have surged in recent years. These cases allege that companies have collected, used, or shared children's personal information in ways that violate federal and state laws designed to protect minors online.

This article examines the growing trend of child privacy class actions, the legal framework they operate within, recent settlements, and how parents can participate in these lawsuits while better protecting their children's digital privacy.

The Legal Framework for Children's Privacy

The primary federal law protecting children's online privacy in the United States is the Children's Online Privacy Protection Act (COPPA). Enacted in 1998 and substantially updated in 2013, COPPA applies to:

  • Operators of commercial websites and online services (including mobile apps) directed to children under 13
  • Operators of general audience sites that have actual knowledge they're collecting personal information from children under 13

Under COPPA, these operators must:

  • Post a clear and comprehensive privacy policy
  • Provide direct notice to parents before collecting information from children
  • Obtain verifiable parental consent before collecting, using, or disclosing personal information from children
  • Allow parents to review their child's information, have it deleted, and opt out of future collection
  • Maintain the confidentiality, security, and integrity of information collected from children
  • Retain personal information only as long as necessary for the purpose it was collected

COPPA is enforced primarily by the Federal Trade Commission (FTC), but states also have authority to bring enforcement actions. Additionally, many states have enacted their own laws providing additional protections for minors online.

While COPPA doesn't provide a private right of action (meaning individuals can't sue directly under the law), violations often form the basis for class action lawsuits under state consumer protection laws, privacy statutes, and common law theories like negligence or unjust enrichment.

Common COPPA Violations

Child privacy class actions typically allege one or more of the following violations:

Collecting Information Without Parental Consent

Many services fail to implement proper age verification mechanisms or parental consent processes before collecting personal information from young users. This includes:

  • Allowing children to create accounts or profiles without parental involvement
  • Collecting personal information during registration without verifiable parental consent
  • Using "nudge" techniques that encourage children to disclose more information than necessary

Excessive Data Collection

Even with consent, some services collect information beyond what's reasonably necessary for the functionality of their platform, such as:

  • Precise geolocation data
  • Persistent identifiers used for tracking across websites
  • Contact lists and social connections
  • Voice recordings or biometric information
  • Behavioral data unrelated to core functions

Inadequate Privacy Policies

Many services fail to provide clear, comprehensive privacy policies specifically addressing children's data, or they bury critical information in complex legal language that parents cannot reasonably understand.

Improper Third-Party Sharing

Some companies share children's data with advertisers, analytics providers, or other third parties without proper disclosure or consent, enabling targeted advertising or profiling of minors.

Insufficient Data Security

Inadequate security measures have led to breaches exposing children's personal information, resulting in class actions alleging negligence in protecting sensitive data.

Failure to Delete Data

COPPA requires the deletion of children's personal information when it's no longer needed or when parents request deletion, but some services retain this data indefinitely.

Major Child Privacy Class Actions

Several significant class actions have shaped the landscape of children's privacy litigation:

Gaming Platform Cases

Multiple video game companies and platforms have faced class actions alleging they collected personal information from children without proper parental notice and consent. One major case involved a popular gaming platform that allegedly allowed children to create accounts, participate in social features, and make purchases without adequate age verification or parental controls.

Educational Technology Litigation

As schools increasingly adopt digital learning tools, several edtech companies have faced litigation over their data collection practices. One class action alleged that a major educational platform collected and analyzed detailed learning profiles of students without proper disclosure to parents.

Social Media Age Verification

Despite having nominal age restrictions, many social media platforms employ weak age verification methods. Class actions have alleged that these companies have actual knowledge that children under 13 use their services but continue to collect their data without parental consent.

Mobile App Tracking

Numerous mobile app developers have faced litigation over embedded tracking technologies that collect persistent identifiers from children's devices to enable behavioral advertising or analytics.

Connected Toy Cases

"Smart" toys that connect to the internet have been the subject of several class actions alleging that they collect children's voice recordings, location data, or other personal information without proper parental notice and consent.

Video Sharing Platforms

A landmark case against a major video sharing platform alleged that the service collected personal information from children who watched child-directed content, using this data for targeted advertising without parental consent. This case resulted in both FTC enforcement and private class action litigation.

Notable Settlements and Outcomes

Child privacy class actions have resulted in several significant settlements:

  • A $170 million settlement between a video platform and the FTC/New York Attorney General for alleged COPPA violations, which was accompanied by related class action settlements
  • A $65 million settlement with a social media company for allegedly collecting biometric information from minors without proper consent in violation of state law
  • A $20 million settlement with a gaming platform over allegations it allowed children to make unauthorized purchases and collected personal information without verifiable parental consent
  • A $13 million settlement with a mobile app developer that allegedly tracked children's online activities across a network of child-directed apps

These settlements typically include both monetary relief and requirements for business practice changes, such as:

  • Enhanced age verification procedures
  • Improved parental notification and consent mechanisms
  • Clear labeling of content directed to children
  • Limitations on data collection from child users
  • Stronger data deletion protocols
  • Regular compliance audits and reports
  • Privacy-protective default settings for users identified as minors

Beyond financial compensation, these outcomes have significantly influenced industry standards for children's privacy, often leading to voluntary improvements by companies seeking to avoid similar litigation.

Parents' Rights Under COPPA

As a parent, you have specific rights regarding your child's online privacy:

Right to Notice

You must receive direct notice before any operator collects personal information from your child. This notice should:

  • Clearly identify what information will be collected
  • Explain how the information will be used
  • Identify whether it will be disclosed to third parties
  • Provide contact information for the operator

Right to Consent

Operators must obtain your verifiable consent before collecting, using, or disclosing your child's personal information. Acceptable consent methods include:

  • Signed consent forms (physical or electronic)
  • Credit card transactions with parental notification
  • Toll-free numbers staffed by trained personnel
  • Video verification of identity
  • Government-issued ID verification

Right to Review

You have the right to review the personal information collected from your child. Operators must provide a way for you to:

  • See all data collected about your child
  • Verify its accuracy
  • Request correction of inaccurate information

Right to Delete

You can request that an operator delete your child's personal information and prevent further collection. Operators must honor this request even if you previously gave consent.

Right to Opt Out of Third-Party Sharing

You can agree to the collection and use of your child's information while prohibiting its disclosure to third parties.

Understanding these rights is essential for protecting your child's privacy and for determining whether you may have claims in relevant class actions.

How to Join a Child Privacy Class Action

If you believe your child's privacy rights have been violated, you may be eligible to participate in class action litigation. Here's how the process typically works:

  1. Class Notification: If a settlement is reached, companies are required to notify potential class members, often through email, in-app notifications, or public notices
  2. Eligibility Verification: Determine if you and your child meet the class definition, which typically requires that your child used the service during a specific time period
  3. Claim Submission: Complete a claim form by the specified deadline, which may require you to attest that your child used the service while under age 13
  4. Documentation: Some cases may require proof of your child's age or use of the service, though many accept declarations under penalty of perjury
  5. Payment Distribution: If the case results in a settlement, payments are distributed according to the settlement terms, often months after the claims deadline

Services like GetBack can help you identify child privacy class actions your family may qualify for and navigate the claims process. This is particularly valuable given that many parents may not realize their children's privacy rights have been violated.

Protecting Your Child's Privacy Online

While class actions provide remedies after privacy violations occur, parents can take proactive steps to protect their children's digital privacy:

  • Review Privacy Policies: Before allowing your child to use a service, check its privacy policy for child-specific provisions
  • Use Parental Controls: Implement device-level and app-specific controls to limit data collection and restrict access to age-appropriate content
  • Choose Privacy-Protective Services: Select platforms with strong privacy practices and appropriate age restrictions
  • Talk About Privacy: Discuss digital privacy with your children in age-appropriate ways, teaching them not to share personal information
  • Monitor Activity: Stay involved with your child's online activities and regularly review what apps and services they're using
  • Use Dedicated Children's Services: When available, choose versions of platforms specifically designed for children, which should have enhanced privacy protections
  • Regularly Delete Data: Request deletion of your child's information from services they no longer use
  • Check Account Settings: Review and adjust privacy settings on all platforms your child uses, opting out of data collection when possible
  • Report Violations: If you believe a service is violating COPPA, report it to the FTC at FTC.gov/complaint

Remember that different children have different privacy needs based on their age, maturity, and individual circumstances. Tailor your approach accordingly.

Conclusion

Class action lawsuits have become an essential mechanism for enforcing children's privacy rights in an increasingly connected world. These cases not only provide compensation to affected families but also drive meaningful changes in how companies design their services, collect data, and obtain consent when engaging with younger users.

As technology continues to evolve and children's online participation grows, we can expect the legal landscape around digital privacy protection to develop further. Class actions will likely remain at the forefront of these developments, complementing regulatory enforcement in ensuring that companies respect the enhanced privacy protections that children deserve.

If you're a parent, staying informed about potential privacy violations and relevant class actions is increasingly important. By understanding your rights under COPPA and related laws, you can better protect your children's digital privacy and potentially recover compensation when those rights are violated.