The UK’s data watchdog has said that VTech’s new terms and conditions would not absolve it of liability in the case of future hack attacks.
It emerged earlier this week that the toy company had changed its terms to say that families using its software did so at their “own risk”.
This prompted a backlash in which some security experts suggested parents should boycott its products.
The UK’s Toy Retailers Association has since said VTech remains “reputable”.
However, at least two major stores have told the BBC that they are in talks with the Hong Kong-based manufacturer to decide how to proceed.
Stolen photos
VTech was alerted to the fact it had been hacked in November when it was contacted by the Motherboard news site.
It later confirmed that more than 6.3 million children’s accounts and 4.8 million parent accounts had been compromised.
Photos, voice messages, and chat conversations between the adults and their children were among the profile data exposed.
The company later hired the security firm FireEye and subsequently restored its Learning Lodge app management platform at the end of last month.
But it caused further controversy when it changed its European terms and conditions to state parents must assume “full responsibility” for using its software.
“You acknowledge and agree that any information you send or receive during your use of the site may not be secure and may be intercepted or later acquired by unauthorised parties,” it added.
“Use of the site and any software or firmware downloaded therefrom is at your own risk.”
The firm told the BBC that the move was intended to help protect itself from legal claims.
“The Learning Lodge terms and conditions, like the T&Cs for many online sites and services, simply recognise that fact by limiting the company’s liability for the acts of third parties such as hackers,” a spokeswoman explained.
“Such limitations are commonplace on the web.”
The terms include the caveat that VTech only absolves itself of responsibility in so far as “applicable laws” allow it to do so.
The Information Commissioner’s Office has confirmed that this would not be possible in the UK.
