VTech's system was hacked two years ago, exposing the personal information of more than 6 million kids and their parents around the world. The largest number of accounts accessed were in the U.S. This week VTech agreed to settle charges brought by the Federal Trade Commission.
The FTC says the company failed to take steps to secure the data it collected. Acting Chairman, Maureen K. Ohlhausen, released this statement, "As connected toys become increasingly popular, it's more important than ever that companies let parents know how their kids' data is collected and used and that they take reasonable steps to secure that data."
This is the first children's privacy case involving internet-connected toys. VTech has agreed to pay a $650,000 penalty to the U.S. government. It was also ordered to strengthen its data security and submit to outside security audits.