The separate settlements represent the ninth and tenth COPPA settlements the FTC has obtained since the Rule went into effect on April 21, 2000. In addition, the complaints allege that the two companies failed to post clear and complete privacy notices or to provide adequate direct notices to parents of what personal information they sought to collect from children. The companies each collected birth date information through their online registration processes, and thus had actual knowledge that they were collecting and maintaining personal information from thousands of children under the age of 13. Among other things, the Rule requires that these Web site operators post privacy policies, provide parental notice, and obtain verifiable consent from a parent or guardian before collecting personal information from children.Īccording to the FTC complaints, UMG and Bonzi each violated the COPPA Rule when they failed to obtain verifiable parental consent before collecting extensive personal information from children under the age of 13. The COPPA Rule applies to operators of commercial Web sites and online services directed to children under the age of 13 and to general audience Web sites and online services that have actual knowledge that they are collecting personal information from children under the age of 13. Previous FTC COPPA cases have addressed Web site operators' information collection practices. The Bonzi Software case is the first COPPA case to challenge the information collection practices of an online service in connection with a software product. Bonzi Software, distributor of the BonziBUDDY software, will pay civil penalties of $75,000. UMG Recordings, which operates several hundred music-related Web sites, will pay civil penalties of $400,000, the largest civil penalty to date for a COPPA violation. each have agreed to settle Federal Trade Commission charges that they violated the Children's Online Privacy Protection Act (COPPA) by knowingly collecting personal information from children online without first obtaining parental consent.
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