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A smart toy is defined as a device consisting of a physical toy component that connects to one or more toy computing services to facilitate gameplay in the cloud through networking and sensory technologies to enhance the functionality of a traditional toy. A smart toy in this context can be effectively considered an Internet of Things (IoT) with Artificial Intelligence (AI) which can provide Augmented Reality (AR) experiences to users. In this paper, the first assumption is that children do not understand the concept of privacy and the children do not know how to protect themselves online, especially in a social media and cloud environment. The second assumption is that children may disclose private information to smart toys and not be aware of the possible consequences and liabilities. This paper presents a privacy rule conceptual model with the concepts of smart toy, mobile service, device, location, and …