FTC Fines COPPA Violators

UMG Recordings and Bonzi Software agree to settlements.

The Federal Trade Commission this week collected it largest fine to date for a violation of the Childrens Online Privacy Protection Act (COPPA) when UMG Recordings agreed to pay $400,000 to settle civil charges brought by the government agency. In a separate civil settlement, Bonzi Software, distributor of the BonziBuddy software, agreed to pay $75,000 in the first COPPA case to challenge the information collection practices of an online service in connection with a software product. The COPPA rule applies to operators of commercial Web sites and online services directed to children, general audience Web sites and online services that have actual knowledge that they are collecting personal information from children under the age of 13.

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