Laws Of .com

U.S. Federal Trade Commission Levies Fines under the Childrens Online Privacy Protection Act

The Federal Trade Commission ("FTC") settled its civil charges against UMG Recordings under the Children's Online Privacy Protection Act ("COPPA") on payment of penalties of $400,000. It settled separate charges against Bonzi Software on payment of $75,000.

The COPPA rules require that operators of commercial web sites and online services directed at children post privacy policies, provide parental notice, and obtain verifiable consent from a parent or guardian before collecting personal information from children.

 

The FTC alleged that in its collection of personal information for the purpose of promoting its music labels and recording artists, UMG had knowledge that children under 13 were registering and did not notify parents or obtain verifiable parental consent. It alleged that Bonzi, which markets free, downloadable software, also had actual knowledge, as a result of collecting birth date information, that thousands of children were registering for its product, the BonziBuddy.

For more information or to view the settlements, visit:
http://www.internetnews.com/bus-news/article.php/3315291
http://www.ftc.gov/opa/2004/02/bonziumg.htm