The German Federal Network Agency has told parents to destroy the "My Friend Cayla" doll, an internet-connected doll that spies on young children. The toy is illegal under German privacy law because it is a "concealed listening device," according to the agency. EPIC and several consumer organizations filed a complaint with the Federal Trade Commission alleging that the doll violates U.S. privacy law. EPIC's complaint spurred a congressional investigation, and toy stores across Europe have removed Cayla from their shelves and are offering refunds to parents who purchased the toys. However, the Federal Trade Commission has failed to act on the complaint and U.S. families continue to purchase the doll that surreptitiously monitors children's communications.
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by Ryan Calo, A. Michael Froomkin,