A talking doll popular in some American toy stores banned in Germany over hacking fears.

FOX's Simon Owen reports from the European bureau:

(My Friend Cayla) "Cayla knows millions of things."

She's marketed as "your new best friend".

It's a doll you can talk to:

(My Friend Cayla) "How do you make a cake? / Mix eggs, flour, milk..."

But 'My Friend Cayla' just lost a few friends. The toy banned in Germany over privacy concerns about the way it transmits what it hears:

(Eul) "These devices are regarded as a danger for the private rights."

Olaf-Peter Eul with Germany's Federal Network Agency saying it's the first time a doll has been targeted.

Cayla's German distributor disputing the ruling, and promising a legal challenge.

In London, Simon Owen, FOX News.

Follow Simon Owen on Twitter: @BigSo