Germany bans 'spying' doll

German regulators have banned an internet-connected doll called "My Friend Cayla" that can chat with children, warning Friday that it was a de facto "spying device".

Parents were urged to disable the interactive toy by the Federal Network Agency which enforces bans on surveillance devices.

"Items that conceal cameras or microphones and that are capable of transmitting a signal, and therefore can transmit data without detection, compromise people's privacy," said the agency's head, Jochen Homann.

"This applies in particular to children's toys. The Cayla doll has been banned in Germany. This is also to protect the most vulnerable in our society."

The doll works by sending a child's audio question wirelessly to an app on a digital device, which translates it into text and searches the internet for an answer, then sends back a response that is voiced by the doll.

The German regulators in a statement warned that anything a child says, or other people's conversations, could be recorded and transmitted without parents' knowledge.

Genesis Toys, which manufactures the doll, says on its website that it "is committed to protecting personal information”.

The regulation agency added that it would "inspect other interactive toys and, if necessary, will take further action".

The European Consumer Organisation said it welcomed the decision but criticised the fact consumers would struggle to get compensation.