FTC Orders Sony Music To Pay $1 Million
First a recap.
The government agency filed suit against Sony Music Dec. 10, claiming the company improperly collected, maintained and disclosed personal information from thousands of children under the age of 13 without their parents’ consent.
But that was then.
Now, Sony Music has agreed to pay $1 million as part of settling the lawsuit, the largest fine ever paid in a Children’s Online Privacy Protection Act (COPPA) case.
The Commission’s consent order also prohibits Sony Music from violating any provision of the rule and requires the company to distribute the order and the FTC’s “How To Comply With the Children’s Online Privacy Protection Rule” to company personnel.
The order also commands Sony Music to link to FTC consumer education materials for the next five years, specifically to the FTC’s children’s privacy section.
“Sites with social networking features, like any Web sites, need to get parental consent before collecting kids’ personal information,” said FTC Chairman William Kovacic. “Sony Music is paying the penalty for falling down on its COPPA obligations.”