Roku reaches $25M settlement with Florida over children's data privacy

This settlement establishes a costly precedent for OS-level data collection, signaling that streaming platforms can no longer rely on 'actual knowledge' gaps to bypass minor protections. As a first-of-its-kind enforcement of Florida's Digital Bill of Rights, it demonstrates that state-level privacy mandates now carry significant financial and technical compliance burdens for hardware manufacturers. For the broader ecosystem, it forces a shift toward more transparent data-sharing protocols with third-party advertisers. Watch for whether other state attorneys general use this $25 million benchmark to demand similar feature-based settlements from competing smart TV manufacturers and device makes.

The settlement occurs as Florida's Digital Bill of Rights (FDBR), which took effect in July 2024, becomes a primary mechanism for state-level privacy enforcement. According to Chambers, March 2026 reporting, the FDBR specifically targets large technology firms with over $1 billion in annual revenue, granting residents the right to opt out of precise geolocation and voice recognition collection—two features central to Roku’s hardware. The Florida Attorney General’s Office of Parental Rights has used the FDBR to launch similar actions against tech giants including Snapchat, TikTok, and Roblox, per Legal Reader, June 2026. This aggressive state posture reflects a shift from standard civil fines toward mandated technical investments.

At the federal level, the regulatory environment is also tightening as the Children and Teens' Online Privacy Protection Act (COPPA 2.0) advanced in Congress. Per House.gov, June 2026, the House passed the legislation as part of the KIDS Act, which seeks to modernize 1998 standards by banning targeted advertising to minors and shifting the liability threshold from 'actual knowledge' to a broader 'should have known' standard. This federal movement aligns with the FTC’s 2025 Rule amendments, which introduced stricter data retention and security obligations for children's personal information with a compliance deadline of April 2026, according to Usercentrics.

Strategically, the resolution clears a significant regulatory hurdle for Roku as it prepares for its $22 billion acquisition by Fox Corporation, announced in June 2026. As reported by Fox Business, the transaction values Roku at $160 per share and is expected to close in the first half of 2027. By settling the Florida litigation without an admission of liability, Roku stabilizes its valuation and simplifies the integration of its 100 million streaming households into Fox’s ad-supported ecosystem, which includes the Tubi streaming service and professional sports broadcasting rights.