Google agreed to pay $30 million to settle a lawsuit alleging its YouTube app collected data from millions of U.S. children under 13 to enable targeted advertising. The lawsuit asserted that the company manipulated children using personal information to extend viewing time, which increased targeted ads and Google revenue. Google admitted no wrongdoing and previously argued the case lacked specific losses and did not allege highly offensive conduct. The 2019 suit represented 34 children and followed a separate $170 million settlement with regulators. The settlement would cover an estimated 35–45 million children from July 1, 2013, to April 1, 2020, with claimants expected to receive at least $30.
Google has agreed to pay $30 million to settle a long-running lawsuit by parents and their children claiming its YouTube video app collected data from millions of U.S. kids under 13 so it could target them with ads. The Mountain View digital advertising and search giant "manipulated children using their personal information into extending their time on YouTube, which in turn increased the number of targeted advertisements shown to them, and increased the revenue earned by Google," according to the lawsuit filed in San Jose U.S. District Court.
Under the settlement agreement filed Aug. 18, which requires court approval, an estimated 35 million to 45 million children who were under 13 while watching children's content on YouTube between July 1, 2013, and April 1, 2020 would be eligible to receive funds. Because only a small fraction of people in such cases submit claims, lawyers for the plaintiffs calculated that those who do make claims will receive at least $30, the document said. The lawyers said outreach including online ads and a news release would reach more than 70% of potential claimants.
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