The Federal Trade Commission (FTC) fined toy firm VTech US$ 650,000 (£482,000) as part of a settlement for violating a US children's privacy laws.
Ken Munro of Pen Test partners has said that VTech toys should be boycotted after the company announced it was no longer responsible for customers' data.
Toy merchant VTech is placing blame for its insecurity issues on its own users.
A 21-year-old man from Bracknell, UK has been arrested in connection with the hacking of the toymaker, VTech.
The security consultancy Pen Test Partners has found major security vulnerabilities in VTech devices, only adding to the bill of mistakes that the toy company has made over the past weeks.
Children's toy company VTech has released more information on its recent breach which left millions of adults and children's personal information in the hands of cyber-criminals.