The Federal Trade Commission (FTC) has settled a case against Toronto-based Kuuhuub Inc. and its Finnish subsidiaries Kuu Hubb Oy and Recolor Oy, operators of the online coloring book app, Recolor. FTC alleged that the app violated the Children's Online Privacy Protection Act ("COPPA") by collecting and disclosing personal information of children using their app without notifying and taking verifiable parental consent. 

It is alleged that the coloring app which is meant for adults, allowed  children below 13 years to register and access its social media features and interact with adults.

Under the settlement Recolor will pay a$3 million USD penalty, must comply with COPPA, delete all personal information previously collected from children below 13 years which is not COPPA-compliant or without parental consent; offer refunds to paid app subscribers who were below 18 years  at the time of sign-up.