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New Delhi: Google will pay $30 million to settle a lawsuit in the United States that accused it of unlawfully collecting the personal data of children under 13 on YouTube without parental consent and using the information for targeted advertising, according to Reuters.
The preliminary settlement of the proposed class action was filed in federal court in San Jose, California, on Monday night and is subject to approval by US Magistrate Judge Susan van Keulen. Google denied any wrongdoing in reaching the agreement.
In 2019, Google’s parent company Alphabet had agreed to pay $170 million in fines and revise its practices to resolve similar allegations brought by the US Federal Trade Commission and the New York Attorney General. That earlier agreement was criticised by some observers as too lenient.
The latest case was brought by parents and guardians of 34 children, who accused Google of breaking dozens of state laws by allowing content providers to attract children with nursery rhymes, cartoons and other material, while continuing to collect data even after the 2019 settlement.
Van Keulen dismissed claims against several content providers, including Hasbro, Mattel, Cartoon Network and DreamWorks Animation, in January this year, citing insufficient evidence linking them to the alleged data collection. Mediation began the following month, ultimately resulting in the settlement.
The proposed class covers US children under the age of 13 who used YouTube between July 2013 and April 2020. Lawyers for the plaintiffs estimate that between 35 million and 45 million children could be included. They suggested that if 1% to 2% of eligible individuals submit claims, payouts could range between $30 and $60 each before deducting legal fees and costs.
The plaintiffs’ lawyers said they plan to seek up to $9 million from the settlement for legal expenses. Alphabet reported a net income of $62.7 billion on revenue of $186.7 billion in the first half of 2025.