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A company that operates numerous music Web sites will have to pay the largest civil penalty levied to date over violating the Children's Online Privacy Protection Act (COPPA), and the Federal Trade Commission is apparently serving public notice that it intends to vigorously enforce the privacy rules.
UMG Recordings, Inc. has been ordered to pay $400,000, after charges were made by the Federal Trade Commission (FTC) alleging violations that include collecting personal information from children online without first obtaining verifiable parental consent.
In addition, Bonzi Software, a software distributor, will pay civil penalties of $75,000. The settlements also prohibit future COPPA violations, mandate the deletion of personal information collected, and allow the FTC to monitor COPPA compliance by the companies. [Editor's Note: For more on COPPA, see "Coping With COPPA" in our January 2004 issue.]
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