Sony BMG has agreed to pay $1 million to the Federal Trade Commission to settle charges claiming Sony violated the Children's Online Privacy Protection Act (COPPA). While $1 million might seem a drop in the bucket to a company like Sony, the FTC points out the $1 million penalty matches the largest ever paid in a COPPA case.
The suit, which was filed just yesterday, alleged that Sony managed to collect personal information on roughly 30,000 users under the age of 13, including full names, gender, birth date, email addresses, mobile phone numbers, and in some cases, full mailing addresses. According to the FTC, the information was obtained through various Sony-owned websites designed to promote and advertise the company's music offerings, but didn't restrict visitors under the age of 13 from registering.
"Sites with social networking features, like any Web sites, need to get parental consent before collecting kids' personal information," FTC Chairman William Kovacic said in a statement. "Sony Music is paying the penalty for falling down on its COPPA obligations."
In addition to the $1 million penalty, Sony must also delete all personal information it had collected from those under 13 years old, and must also distribute the FTC's "How to Comply with the Children's Online Privacy Protection Rule" to all of its employees. In addition, Sony's also required to link to the children's privacy section of the FTC's website for five years.
Image Credit: Flickr Joe Gratz