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Illustration: Rebecca Zisser/Axios

Google will pay $170 million to settle a Federal Trade Commission complaint that its YouTube subsidiary illegally collected children's personal information, the agency announced Wednesday morning.

The big picture: The FTC touted the settlement, details of which had circulated widely last week, as a record-breaking penalty that would shape YouTube's future behavior. But critics — including the FTC's two Democratic commissioners — argued that both the size of the fine and accompanying new restrictions on the company's behavior don't go far enough to protect the public.

Details: The FTC found that YouTube's tracking of underage users violated provisions of the 1998 Children's Online Privacy Protection Act (COPPA) because the company failed to notify users of child-directed channels about the tracking and obtain parental consent.

  • Under a consent decree that is part of the settlement, YouTube will be required to build a system for "channel owners to identify their child-directed content" so YouTube can comply with COPPA rules.

What they're saying: "This settlement achieves a significant victory for the millions of parents whose children watch child-directed content on YouTube," FTC chairman Joseph Simons and commissioner Christine Wilson wrote in a release. "It also sends a strong message to children’s content providers and to platforms about their obligation to comply with the COPPA Rule. "

"We believe the significant monetary penalty, coupled with the far-reaching conduct relief, is almost certainly better than what we would achieve in litigation. Importantly, the relief for consumers is immediate, rather than after years of litigation."
— Simons and Wilson

The $170 million penalty "is almost 30 times higher than the largest civil penalty previously imposed under COPPA," Wilson notes.

Yes, but: That's still small compared with the tens of billions Google earns in revenue annually, and critics of the settlement argue that it won't serve as as real deterrent to the company and its peers.

  • Similar criticisms arose in July when the FTC announced its much larger $5 billion settlement with Facebook for privacy violations.
  • In a dissenting statement, commissioner Rohit Chopra argues: "The Commission repeats many of the same mistakes from the flawed Facebook settlement: no individual accountability, insufficient remedies to address the company’s financial incentives, and a fine that still allows the company to profit from its lawbreaking. The terms of the settlement were not even significant enough to make Google issue a warning to its investors."

What's next: The settlement, which also would conclude a parallel inquiry by New York state, must be approved by a Federal district court judge.

Go deeper: For tech giants, profits far outweigh fines

Go deeper

6th victim dies following South Carolina shooting

Jack Logan, founder of Put Down the Guns Young People, places stuffed animals and flowers outside of Riverview Family Medicine and Urgent Care on Friday after the fatal shooting in Rock Hill, South Carolina, a day earlier. Photo: Sean Rayford/Getty Images

The only survivor of this week's mass shooting in South Carolina by former NFL player Phillip Adams has died of his injuries, authorities said Saturday.

Details: Robert Shook, 38, an air conditioning technician from Cherryville, North Carolina, died of gunshot wounds from Wednesday's shooting at a doctor's home in Rock Hill, S.C., which claimed the lives of five other victims.

2 hours ago - World

In photos: Egypt unveils 3,000-year-old "lost golden city"

A view on Saturday of the city, dubbed "The Rise of Aten," dating to the reign of Amenhotep III, uncovered near Luxor. Photo: Khaled Desouki/AFP via Getty Images

A top Egyptian archaeologist on Saturday outlined details of a newly rediscovered "lost golden city" near Luxor that dates back more than 3,000 years.

Why it matters: Zahi Hawass told NBC News the large ancient city, unveiled Thursday, tells archaeologists for the first time "about the life of the people during the Golden Age." Johns Hopkins University Egyptology professor Betsy Brian said in a statement it's "the second most important archeological discovery since the tomb of Tutankhamen."

1 dead as severe storms pummel the South

A tree that fell on a home carport damaged a vehicle during a storm in Central, Louisiana. No injuries were reported, according to Central Fire Department. Photo: Central Fire Department/Twitter

Strong storms lashed the South early Saturday, spawning at least one tornado and unleashing powerful winds and hail. And forecasters warned more severe weather was expected to hit parts of the region in the coming hours.

Details: Thousands of customers lost power in Florida, Mississippi, Arkansas, Texas and Louisiana, according to tracking site poweroutage.us. An F3 tornado that hit St Landry Parish, Louisiana, killed one person and wounded seven others.