Privacy Groups Claim IoT Toys Violate Children’s Online Privacy Protection Act

Internet-connected toys may spy on children, said consumer and privacy groups in an FTC complaint Monday against Genesis Toys and its voice-recognition vendor partner Nuance Communications. Dolls known as My Friend Cayla and i-Que Intelligent Robot collect and use personal information from children in violation of the Children’s Online Privacy Protection Act and FTC rules prohibiting unfair and deceptive practices, alleged the complaint by the Electronic Privacy Information Center, Consumers Union, Center for Digital Democracy and Campaign for a Commercial-Free Childhood. The companies "unfairly and deceptively collect, use, and disclose audio files of children’s voices without providing adequate notice or obtaining verified parental consent,” the complaint said. Genesis failed to take reasonable security measures to prevent unauthorized Bluetooth connections with the toys, opening the door for strangers to eavesdrop on kids, it said. The toy company didn’t adequately disclose privacy dangers on packaging or in terms of service, the complaint said. The groups filed the complaint as part of a coordinated, trans-Atlantic legal action with groups in Europe, said Campaign for a Commercial-Free Childhood in a Tuesday news release. Nuance hasn't received an inquiry from the FTC or other privacy authority, but when it does, it will respond appropriately, the company said in a blog post Tuesday. "Nuance takes data privacy seriously," it said. "Our policy is that we don’t use or sell voice data for marketing or advertising purposes." After learning about the concerns through media, the company said it "validated that we have adhered to our policy with respect to the voice data collected through the toys referred to in the complaint ... Nuance does not share voice data collected from or on behalf of any of our customers with any of our other customers." Genesis didn’t comment.