Antony Walker, deputy CEO of technology trade association techUK, claims Smart Toys could be next item to be used by the government in an effort to spy on people. Smart Toys, such as Hello Barbie and My Friend Cayla, come Wi-Fi enabled and have microphones and cameras built-in that come with microphones and can be used to gather information such as what you just said and where you put your keys, credit card, passport, and wallet. Walker also emphasised that the government should carefully consider how the “equipment interference” warrants should be used for electronic gadgets and make sure they’re only used when necessary and proportionate.
Source: https://thehackernews.com/2015/12/spy-toy-hacking.html

