FTC Targets Toymaker Over COPPA Violations

Author

Taylor Hawes
September 04, 2025

✍🏻 From the Editor’s Desk

AI-driven threats are pushing cybersecurity firms and policymakers to rethink traditional defenses. From FTC crackdowns on children’s data collection to major acquisitions in email security, the past week highlights how quickly regulations and market strategies are shifting to counter sophisticated attacks. Are companies and governments moving fast enough to keep up with AI-powered cyber risks?

🔎 Deep Brief

FTC Targets Toymaker Over COPPA Violations

The FTC has penalized Apitor, a toymaker, for violating the Children’s Online Privacy Protection Act (COPPA) by collecting geolocation data from children without parental consent. This settlement is the regulator’s latest move to hold companies accountable for failing to protect children’s privacy online. COPPA requires explicit parental approval before any personal data from children under 13 is gathered, making location data collection without consent a clear violation.

This action underscores a broader enforcement trend as regulators scrutinize how companies handle children’s data, especially as connected toys and apps become more common. For businesses, the case highlights the growing regulatory focus on transparency, parental controls, and strict data governance measures. As more devices and apps designed for kids incorporate GPS and internet connectivity, companies must adopt robust safeguards or risk heavy fines and reputational damage. 

🧠 Strategy in Action

Varonis Acquires AI Email Security Startup SlashNext

Israeli cybersecurity firm Varonis is acquiring California-based SlashNext for $150 million to enhance its defenses against phishing and AI-driven threats. SlashNext, founded in 2017, specializes in predictive AI, computer vision, and natural language processing to block email-based attacks.

Varonis, known for its cloud-based data security platform, is betting on integrating SlashNext’s technology to strengthen its offerings amid an increasingly hostile threat environment. This deal is another sign that cybersecurity companies are prioritizing AI investments to counter advanced phishing campaigns and protect sensitive enterprise data.

👉 Takeaway: The acquisition reflects the growing demand for AI-driven email security, with the market expected to double to $10.7 billion by 2032.

⚖️ Regulation Radar

Congress Advances Cyber Bills for States and Threat Sharing

The House Homeland Security Committee has approved two major cyber policy bills to strengthen state and local government defenses and reauthorize cybersecurity information sharing between the private sector and federal agencies. Both bills face Senate scrutiny before their Sept. 30 expiration date.

The centerpiece, the Widespread Information Management for the Welfare of Infrastructure and Government Act, reauthorizes the 2015 Cybersecurity Information Sharing Act. 

What IT leaders should know.

  • The updated text adds oversight requirements and references the use of AI in threat data sharing.

  • These bills could significantly enhance collaboration between sectors, improve oversight of sensitive data, and provide much-needed funding for state and local cybersecurity initiatives.

🛠️ Tool Check

Best Data Recovery Software

Data recovery tools are essential for restoring corrupted, deleted, or inaccessible files—especially when backups fail. Here are leading solutions.

Top tools are: 

  1. Remo – Wide recovery options for external media and specialized file types.

  2. Stellar – Similar to Remo but with higher pricing; offers free versions.

  3. Data Rescue – Simplified recovery for logical and physical system issues.

  4. EaseUS – Known for photo recovery and file repair features.

  5. Acronis True Image – Combines anti-malware with data backup for home users.

  6. Vembu BDR Suite – Six editions for backups across endpoints and VMs. 

  7. Disk Drill – A popular choice for macOS with robust free tools.

🗣️ Community Signal

“Something that a lot of vendors don’t actually realize that no matter how much you lock down your operating system, there’s always going to be a creative group out there that does things better, that can get around it.” Matthew Holland, Founder and CEO of Field Effect Security.

📚 Don’t Miss This

🗳️ Your Take - The Results

Poll Question: Which shift will be most critical to stay ahead of emerging cybersecurity threats?

🔗 Stay Connected

Until next week!