Tag Archives: COPPA

RockYou Settles FTC Charges Related to Data Breach, COPPA Violations

Posted on March 28, 2012 by Hunton & Williams LLP

On March 27, 2012, the Federal Trade Commission announced a proposed settlement order with RockYou, Inc. (“RockYou”), a publisher and developer of applications used on popular social media sites. The FTC alleged that RockYou failed to protect the personal information of 32 million of its users, and violated multiple provisions of the FTC’s Children’s Online Privacy Protection Act (“COPPA”) Rule when it collected information from approximately 179,000 children.

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FTC Issues “Warning Call” to Developers of Apps for Kids

Posted on February 21, 2012 by Hunton & Williams LLP

In its new report, Mobile Apps for Kids: Current Privacy Disclosures are Disappointing, the Federal Trade Commission issues a “warning call to industry that it must do more to provide parents with easily accessible, basic information about the mobile apps that their children use.” The report indicates:

“Parents should be able to learn what information an app collects, how the information will be used, and with whom the information will be shared. App developers also should alert parents if the app connects with any social media, or allows targeted advertising to occur through the app. Third parties that collect user information through apps also should disclose their privacy practices, whether through a link on the app promotion page, the developers’ disclosures, or another easily accessible method.”

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New Self-Regulatory Principles for Multi-Site Data

Posted on November 10, 2011 by Hunton & Williams LLP

This week, the Digital Advertising Alliance (the “DAA”) unveiled new “Self-Regulatory Principles for Multi-Site Data” (the “Principles”), aimed at expanding the scope of industry self-regulation with respect to online data collection. The Principles are designed to supplement the Self-Regulatory Principles for Online Behavioral Advertising which were issued in July 2009. The DAA is composed of several constituent industry groups such as the American Association of Advertising Agencies, Council of Better Business Bureaus, the Direct Marketing Association and the Interactive Advertising Bureau.

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FTC Settles COPPA Violation Charges Against Children’s Social Networking Website

Posted on November 9, 2011 by Hunton & Williams LLP

On November 8, 2011, the Federal Trade Commission announced that the operator of skidekids.com, a social networking website that advertises itself as the “Facebook and Myspace for Kids,” has agreed to settle charges that he collected personal information from approximately 5,600 children without parental consent, in violation of the Children’s Online Privacy Protection Act (“COPPA”) Rule. The proposed settlement will bar future violations of COPPA and misrepresentations about the collection, use and disclosure of children’s information.

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FTC Proposes COPPA Rule Changes

Posted on September 19, 2011 by Hunton & Williams LLP

On September 15, 2011, the Federal Trade Commission released proposed amendments to the Children’s Online Privacy Protection Rule (“COPPA Rule” or “Rule”).  These revisions follow the FTC’s review of the COPPA Rule, which resulted in numerous comments from various groups and individuals, as well as a public round table that took place on June 2, 2010.  The proposed amendments reflect the FTC’s commitment to “helping to create a safer, more secure online experience for children” in the face of rapid technological change.
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FTC Announces First Privacy Settlement Involving Mobile Applications

Posted on August 15, 2011 by Hunton & Williams LLP

On August 15, 2011, the Federal Trade Commission announced a settlement with W3 Innovations, LLC, doing business as Broken Thumbs Apps (“W3”) for violations of the Children’s Online Privacy Protection Act (“COPPA”) and the FTC’s COPPA Rule.  This marks the FTC’s first privacy settlement involving mobile applications. Continue reading…

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Disney Subsidiary Settles FTC COPPA Violation Charges with $3 Million Penalty

Posted on May 13, 2011 by Hunton & Williams LLP

On May 12, 2011, the Federal Trade Commission announced that Playdom, Inc., a Disney subsidiary, has agreed to pay $3 million to settle charges that the company violated Section 5 of the FTC Act and the Children’s Online Privacy Protection Rule (“COPPA Rule”) “by illegally collecting and disclosing personal information from hundreds of thousands of children under age 13 without their parents’ prior consent.”  This settlement marks the largest civil penalty imposed for an FTC COPPA Rule violation. Continue reading…

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Parental Control Software Developer to Pay $100,000 for Children’s Privacy Violation

Posted on September 17, 2010 by Hunton & Williams LLP

On September 15, 2010, New York State Attorney General Andrew Cuomo announced a $100,000 settlement with EchoMetrix, a developer of parental control software that monitors children’s online activity.  The settlement comes one year after the Electronic Privacy Information Center (“EPIC”) alleged in a complaint to the Federal Trade Commission that EcoMetrix was deceptively collecting and marketing children’s information.

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Federal Trade Commission Comes out Swinging: Two-Day Enforcement Haul Totals More than $18.5 Million

Posted on October 20, 2009 by Hunton & Williams LLP

The Federal Trade Commission is having a very busy week, announcing settlements in three high profile cases all before the close of business Tuesday.

The FTC today announced a settlement with MoneyGram International, Inc., the second largest provider of money transfer services in the U.S., which allegedly facilitated a host of fraudulent activities undertaken by telemarketers and other con artists.  The FTC charged that these practices violated both the FTC Act and the Telemarketing Sales Rule.  MoneyGram has agreed to pay $18 million into a fund that will be used to pay restitution to consumers for facilitating fraud on American consumers from Canada.  The $18 million settlement represents MoneyGram’s total return on $84 million in fraudulent transactions.  The settlement further requires implementation of a comprehensive anti-fraud program that is reminiscent of the Identity Theft Prevention Programs mandated by the FTC’s Red Flags Rule, including employee training and ongoing monitoring to detect fraud.

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First Amendment Challenge Prompts Maine AG to Postpone Enforcement of New Child Privacy Protection Law

Posted on September 10, 2009 by Hunton & Williams LLP

On September 9, 2009, the U.S. District Court for the District of Maine dismissed a lawsuit challenging the validity of the Act to Prevent Predatory Marketing Practices Against Minors (the “Act”), which is set to take effect on September 12, 2009.  The Act prohibits businesses from knowingly collecting or receiving a minor’s health-related information or personal information for marketing purposes without first obtaining verifiable parental consent.  Businesses are also prohibited from using any health-related information or personal information regarding a minor for the purpose of marketing a product or service to the minor.  In dismissing the claim, the Court acknowledged that the Plaintiffs had successfully established the likelihood of success on the merits that the Act is overbroad and violates the First Amendment.  Although the Plaintiffs met this burden, the Court recognized that the Attorney General has agreed not to enforce the Act, and the Maine Legislature is committed to reconsidering its scope in January 2010.  Accordingly, the Court, with the agreement of the parties, closed the lawsuit in a stipulated order of dismissal.

Click here for details regarding the scope and requirements of the Act.

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