Report: Sony BMG Settles FTC Suit Over Kids' Info
December 11, 2008 at 6:32 AM (PT)
The WALL STREET JOURNAL is reporting that SONY BMG MUSIC ENTERTAINMENT has reached a settlement with the FEDERAL TRADE COMMISSION over a lawsuit filed WEDNESDAY claiming the company collected and used children's personal information at its websites.
The FTC suit claimed that SONY BMG violated the Children's Online Privacy Protection Act and the FEDERAL TRADE COMMISSION Act by collecting information from least 30,000 children since 2004 "without first providing notice of its information practices to their parents, without obtaining verifiable consent from their parents and without providing parents with "reasonable procedures" to access their children's information," reports the JOURNAL. The settlement includes payment of a $1 million fine and institution of a screening process for its music Websites, plus the hiring of a web compliance officer.