Tag Archives: COPPA

New Self-Regulatory Principles for Multi-Site Data

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

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

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

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

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

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

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

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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Maine Enacts Comprehensive New Law Restricting Marketing to Minors

On September 12, 2009, Maine’s Act to Prevent Predatory Marketing Practices Against Minors (the “Act”) will take effect.  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.  Pursuant to the Act, the use of information in such a manner is a predatory marketing practice, which may be sanctioned as an unfair trade practice.  The law also allows individuals subject to unlawful data collection or predatory marketing practices to bring a private right of action against violators.

For businesses, the implications of Maine’s new data collection and marketing restrictions are far-reaching.  The scope of the law covers both online and off-line marketing activities, and the broad definition of personal information includes a minor’s name in combination with any information concerning the minor.  In light of the Act’s restrictive requirements and considerable scope, businesses would be well-advised to evaluate their current marketing practices and age verification mechanisms.  The text of the law is available here.

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