"This holiday shopping season, millions of parents will consider purchasing 'smart' toys for their children. These 'connected toys' -- toys that are connected to the Internet -- offer many promising applications, including the potential to assist in the overall education and cognitive development of children. The personally identifiable information (PII) collected by these connected toys, however, also raises serious privacy and data security concerns. These concerns are magnified when the data at issue is sensitive children's information. The improper disclosure of a child's personal information -- including, for example, name, home address, online contact information, or physical location -- can lead to inappropriate contact, sexual exploitation, or abduction. In addition to clear physical threats, children's personal information is a growing target for identity thieves. Bad actors can use children's information to create false identities that can be used to engage in a variety of financial frauds and other crimes."
Senate Committee on Commerce, Science, and Transportation: https://www.commerce.senate.gov/