In December, consumer groups filed complaints about two talking toys: the I-Que Intelligent Robot and My Friend Cayla doll, which send personal information collected from children to a company that contracts with the US military and intelligence agencies. The companies shared the data without parents’ consent, violating the Children’s Online Privacy Protection Act, the complaints alleged.
Germany has banned the Cayla doll outright over spying concerns.
In response, a bill aimed at protecting children against eavesdropping toys and other home gadgets is now moving through the California state legislature. Authored by Democratic State Senator Hannah-Beth Jackson of Santa Barbara, the bill is intended to ensure consumer security, especially when it comes to children’s toys and home devices.
“I embrace California’s role as a technological innovator,” Jackson told reporters on a call Thursday. “But I’m concerned when [companies] advance without adequate disclosures, consumer information, safeguards, and knowledge of what the potential is with each of these devices.”
The law would require devices to indicate when they are collecting information and to obtain consumer consent before they collect or transmit information.
While some specifics will be left up to manufacturers — “since technology changes so quickly and they know the industry,” Jackson said — the senator said she expects the bill would lead to increased password protections against hacking and additional requests for consent prior to collecting information like location.

Extract From www.buzzfeed.com