There are dangers noted in privacy if parents are not careful with controls and supervision, as shared below

http://www.foxnews.com/tech/2017/02/28/data-from-internet-connected-teddy-bears-held-ransom-security-expert-says.html

Data from internet-connected smart teddy bears has been leaked and ransomed, exposing children’s voice messages and more than half a million customer accounts, according a security expert.  In a blog post, cybersecurity expert Troy Hunt says that an unnamed source contacted him about a data breach affecting the CloudPets range of stuffed animals. The Bluetooth-connected toys let parents upload and download messages to and from their children via an app.

The CloudPets database had allegedly been left exposed online. “Someone sent me data from the table holding the user accounts, about 583k records in total,” wrote Hunt, in his blog post. “There are references to almost 2.2 million voice recordings of parents and their children.” Hunt added that the information was sent to him by “someone who travels in data breach trading circles,” and said that others had also accessed the information. “The CloudPets data was accessed many times by unauthorised parties before being deleted and then on multiple occasions, held for ransom,” he wrote.

Steven Malone, director of security product management at security company Mimecast told Fox News that users need to think carefully about the security implications of the Internet of Things, where a wide range of devices are connected to the web. “Just because you can connect a device to the Internet, it doesn’t mean you should!” he wrote.