VTech to settle charges it violated children's privacy: U.S. FTC

WASHINGTON (Reuters) - Electronic toymaker VTech has agreed to settle charges that the company violated a U.S. children’s privacy law by collecting personal information without providing notice or obtaining parental consent, the Federal Trade Commission said on Monday.

Hong Kong-based VTech Electronics Ltd and its U.S. subsidiary agreed to pay $650,000 to settle the charges brought by the FTC, the U.S. agency said in a statement. The two are part of Hong Kong-based VTech Holdings Ltd.

The FTC alleged in a complaint filed by the Justice Department that the Kid Connect application sold with some of VTech’s electronic toys collected personal information of hundreds of thousands of children without parental consent. The firm also failed to take reasonable steps to secure the data it collected, the FTC said.