The regulator has recommended that parents immediately stop use of the "illegal" doll and destroy its internal microphone.
The doll -- called My Friend Cayla -- connects to the internet via Bluetooth. The setup allows it to listen and respond to questions like: "What's the tallest animal in the world?" (Answer: Giraffe)
But the German regulator says the doll's design violates privacy rules. They worry that it could be used to snoop on families.