CLOSEClose Menu

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
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, 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 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. The FTC claimed that each of the companies collected birth date information through their online registration processes, and thus had actual knowledge that they were collecting and maintaining personal information from many children under the age of 13. The complaints also said the companies neglected to post clear and complete privacy policies, and failed to give sufficient direct notices to parents of what personal information they intended to collect from children. According to the FTC, the settlements with UMG and Bonzi constitute the ninth and tenth COPPA settlements forged by the FTC since its COPPA Rule went into effect in April, 2000. Companies that direct their Web sites or online services to children under the age of 13 or that know should make sure they’re in compliance. The FTC’s Web site at provides information that will help. Parents and teachers might also be interested in checking it out. In addition, the FTC is releasing a business alert on the “actual knowledge” standard of its COPPA Rule to help Web site operators and online service providers in meeting the Rule’s requirements. The alert can be accessed at . Eric Sinrod is a partner in the San Francisco office of Duane Morris (, where he focuses on litigation matters of various types, including information technology disputes. His Web site is, and he can be reached at [email protected] . To receive a weekly e-mail link to these columns, please send him an e-mail with “Subscribe” in the subject line.

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at [email protected]


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.