Snapchat facing a possible $184 million fine, if found guilty over underage users

Social media platforms don’t have it too easy these days, and Snapchat is no exception to that. Snapchat owner Snap Inc could face a formal investigation and, if found guilty, be fined some $184 million. All of this – over mismanaging and not enforcing strict enough policies to remove underage users from its platform (via Reuters).

Ofcom is the UK's communications regulator – last year it found out that in the UK, the most popular app for underage social media users was none other than Snapchat. According to their data, more than half (approximately 60%) of kids that are aged between 8 and 11 had “at least one social media account, often created by supplying a false date of birth”. UK’s data protection law states that social media companies need consent from the parents, if in need to process data of kids under 13.

So far Snapchat has not issued an official statement on the matter of reducing the number of underage users. A Snap person says the company does strive towards ensuring that “digital platforms are age appropriate and support the duties set out in the Children's Code”. Before starting an official investigation, ICO (Information Commissioner's Office) has to gather information and may ask the company to aid the investigation.

A report from Reuters in March claimed that Snapchat had only removed “a few dozen” under-13 accounts from its platform in Britain last year. Ofcom estimates Snapchat has “thousands of underage users”. If an investigation launches and if found guilty, Snap Inc could be fined an equivalent to up to 4% of its annual global turnover, which Reuters estimates at $184 million (based on recent Snap Inc financial results).

On a side note, the NSPCC (National Society for the Prevention of Cruelty to Young Children), said that figures it had obtained showed that Snapchat accounted for 43% of cases in which social media was used to distribute indecent images of children.