Sony BMG Music Entertainment (Sony Music) has agreed to pay $1 million as part of a settlement to resolve Federal Trade Commission charges that it violated the Children’s Online Privacy Protection Act (COPPA) and the Commission’s implementing Rule. The Commission’s complaint alleges that, through its music fan Web sites, Sony Music improperly collected, maintained and disclosed personal information from thousands of children under the age of 13, without their parents’ consent. The civil penalty to be paid by Sony Music matches the largest penalty ever in a COPPA case.
Sony BMG Music Entertainment, a subsidiary of Sony Corporation of America, represents hundreds of popular musicians and entertainers, including numerous artists popular with children and teenagers. The company operates over 1,000 Web sites for its musical artists and labels. Sony Music requires users to submit a broad range of personal information, together with date of birth, in order to register for these sites. On 196 of these sites, Sony Music knowingly collected personal information from at least 30,000 underage children without first obtaining their parents’ consent, in violation of COPPA. Many of these sites also enable children to create personal fan pages, review artists’ albums, upload photos or videos, post comments on message boards and in online forums, and engage in private messaging. In this way, children were able to interact with Sony Music fans of all ages, including adults.
“Sites with social networking features, like any Web sites, need to get parental consent before collecting kids’ personal information,” said FTC Chairman William E. Kovacic. “Sony Music is paying the penalty for falling down on its COPPA obligations.”
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