Posted by
Jonathan Z. Greene on Saturday, December 13, 2008 5:59:14 AM
Sony BMG Music Entertainment has agreed to pay $1 million to
settle charges by the Federal Trade Commission that it improperly
collected and disclosed personal information on thousands of children
under 13 without their parents' consent.
The FTC said
Thursday the civil penalty is the largest ever to be paid in a case
alleging violation of the Children's Online Privacy Protection Act. A
representative for Sony Music did not immediately return a voicemail
seeking comment.
"Sites with social networking
features, like any Web sites, need to get parental consent before
collecting kids' personal information," said FTC Chairman William E.
Kovacic in a statement.
The FTC said Sony Music,
which operates more 1,000 music sites for its music artists and labels,
"knowingly collected personal information from at least 30,000 underage
children without first obtaining their parents' consent" on 196 of its
sites.
The FTC order requires Sony Music to delete
all personal information collected and maintained in violation of the
rule. For the next five years, Sony also must provide links to FTC
consumer education materials on those Web sites that fall under the
Children's Online Privacy act - including those that target or collect
personal information on children.
The FTC's complaint
was filed in federal court in New York Wednesday afternoon. The
settlement was submitted for the court's consideration at the same
time.