NEW YORK — A $4.95 million settlement has been reached between Oath Inc., formally AOL, and the state of New York to resolve charges that the company violated the Children's Online Privacy Protection Act (COPPA), according to the New York State Attorney General's Office.
State Attorney General Barbara Underwood's office said Oath auctioned ad space on websites that were targeting children under 13, which resulted in collecting, using and giving out personal information so advertisers could track children in an effort to target their advertising.
“COPPA is meant to protect young children from being tracked and targeted by advertisers online," Underwood said in a statement. "AOL flagrantly violated the law – and children’s privacy – and will now pay the largest-ever penalty under COPPA. My office remains committed to protecting children online and will continue to hold accountable those who violate the law.”
According to the settlement agreement, Oath will not only pay the record $4.95 million penalty for COPPA violations but must initiate changes to stop the "improper tracking" of children on the internet, the Attorney General's Office said.
The investigation of Oath was part of the Attorney General Office's "Operation Child Tracker," which is targeting the illegal tracking of online activity of children.