COPPA Enforcement Action

Earlier today, the FTC announced its latest COPPA enforcement action (http://www.ftc.gov/opa/2009/10/iconix.shtm).  Iconix Brand Group, Inc., the operator of websites featuring its apparel brands, was fined $250,000 for collecting personal information from children without complying with COPPA’s parental consent rubric.

The FTC cited the websites associated with the brands Mudd, Candie’s, Bongo and OP, which are popular with children and teens. The FTC did not characterize Iconix’s websites as ones “directed to children.” According to the FTC's complaint, the websites each have online registration processes that, among other things, collect the birthdate of users; and Iconix violated COPPA by collecting personal information from approximately 1000 users who identified themselves as under 13. The collection occurred both through website and sweepstakes registration, post-registration email marketing, and also through public disclosure at a “Share Your Story” feature on one of the websites.

The FTC also cited Iconix for stating in its privacy policy that it would not collect personal information from children without parental consent, when its practices did not conform to its policy.

General audience websites that collect birthdate or age-related information from their users should employ an FTC-compliant neutral age-screening mechanism to ensure that if a user enters information disclosing that he or she is under 13, the website operator does not collect or disclose personally identifiable information from that user.
 

Media Companies May Block Maine Marketing to Minors Law

On Wednesday, August 26, 2009, a lawsuit was filed in federal court in Maine to enjoin Maine’s new predatory marketing to minors law, which was previously discussed on our blog. If not enjoined, this problematic law is scheduled to go into effect on September 12, 2009.

The complaint, filed on behalf of offline and online entities, alleges that the law violates the First Amendment and the Commerce Clause of the Constitution, as well as 42 U.S.C. § 1983, and is preempted by COPPA (the Children’s Online Privacy Protection Act).   Injunctive and declaratory relief is sought, as well as attorney’s fees. 

Texas Attorney General Settles One of First State COPPA Enforcement Actions

In December 2007, Texas became the first state to file COPPA enforcement actions, by separately suing the entities behind Gamesradar.com and TheDollPalace.com in the United States District Court for the Western District of Texas. The complaints are available as an attachment to the press release on the Texas Attorney General’s website. The defendants in those cases are California and New York – and not Texas – entities.

With little fanfare, Texas apparently settled its suit involving TheDollPalace.com ("where cartoon dolls live") in March 2008, and in doing so has imposed restrictions on content with no precedent in the COPPA consent decrees entered into by the Federal Trade Commission.

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Caution: Children's E-Cards Could Result in COPPA Issues

The Federal Trade Commission has quietly changed its position on the level of parental consent required under the Children’s Online Privacy Protection Act (“COPPA”) for e-cards sent from a website directed to children.

Under COPPA, websites directed to children under 13 are required to obtain parental consent prior to the collection of personal information – including an email address or a first and last name – from children under 13. There are certain exceptions to this requirement, including the so-called “one-time use” exception, which permits websites directed to children to collect an email address to respond once to a child’s specific request, provided that the website deletes that email address after doing so. The FTC had taken the position that an e-card – which typically permits a child to send a message to a friend’s email account – fell under this exception. Thus, no parental consent was required.

At the end of last year, however, the FTC amended its “Frequently Asked Questions about the Children’s Online Privacy Protection Rule,” available at http://www.ftc.gov/privacy/coppafaqs.shtm, and specifically noted in response to the FAQ concerning e-cards (FAQ 44) that “where an operator’s e-card or forward-to-a-friend system discloses the sender’s email address or first and last name in the message, the operator must obtain verifiable parental consent before such collection and disclosure.” Accordingly, operators of websites directed to children must now comply with COPPA’s verifiable parental consent provisions before permitting children under 13 to send e-cards that disclose their email addresses or full names.

State Attorneys General Announce Agreement with MySpace to Protect Children Online

Yesterday, attorneys general from 49 states (all but California’s) and the District of Columbia announced a sweeping agreement with MySpace under which the company will adopt new measures to protect children online. This announcement culminates many months of negotiations between a task force of the attorneys generals led by Richard Blumenthal, the Connecticut Attorney General and Roy Cooper, the North Carolina Attorney General and is reflective of the intense pressure on web 2.0 sites to protect children online. We previously posted about that pressure, reporting on state attorneys general investigations of MySpace and Facebook here and the subsequent New York attorney general settlement with Facebook here. The new agreement with MySpace is available as an attachment to the press release on the North Carolina Attorney General’s website. 

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New York Attorney General Settlement with Facebook Creates New Model to Protect Children Online

In follow-up to our earlier blog post regarding recent pressure on social networking sites from law enforcement, New York Attorney General Andrew Cuomo announced yesterday that his office had entered into a settlement with Facebook. The settlement resolves the Attorney General’s investigation of Facebook’s failure to fulfill public claims it made about protecting minors, which the Attorney General believed were deceptive acts and practices and false advertising in violation of New York consumer protection laws. Facebook did not admit to any wrongdoing.  

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Social Networking Sites Feel The Heat From Law Enforcement

Kids like social networking sites, most notably MySpace and Facebook. So it is not surpising that law enforcement is scrutinizing how the sites protect children. Recent subpoenas issued to Facebook by New York Attorney General Andrew Cuomo and New Jersey Attorney General Anne Milgram are illustrative.

Both subpoenas sought information about Facebook’s Internet safety and security policies. The New York subpoena, issued last month, also sought information concerning Facebook’s complaint resolution procedures. In its subpoena cover letter to Facebook, Attorney General Cuomo noted Facebook’s public representations concerning how it responds to reports of pornographic material and inappropriate contact with minors.  It also described its undercover investigation of Facebook. According to the letter, the investigation revealed pornographic and other inappropriate content readily available on the site. In addition, after investigators set up profiles as young teenage users, they received inappropriate sexual advances. The investigators filed complaints about these issues through Facebooks’ complaint procedures. The letter notes various instances of non-responsiveness or delayed response to such complaints. The New Jersey subpoena issued earlier this month, described here, sought information from Facebook concerning convicted New Jersey sex offenders that Facebook has identified as site users.  Facebook previously informed the New Jersey Attorney General it had removed sex offenders with profiles matching individuals listed on the New Jersey sex offender registry. Attorney General Milgram also sent letters to eleven other social networking sites requesting they compare their registrants against the state’s sex offender list.     

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