Iconix Pays $250,000 Fine to FTC in Latest COPPA Action

According to a 10/20/09 release from the FTC, children/teen fashion company Iconix (which includes brands such as Mudd, Candie's, Bongo and OP) has agreed to pay a $250,000 fine as a penalty for violating the Children's Online Privacy Protection Act (COPPA), which in part requires Web site owners to get verifiable parental consent before knowingly collecting personal information from children under age 13. COPPA also mandates explicit and accurate disclosures as to what information is being collected, and to what use it is put. According to the FTC's release:

The Commission's complaint also charges Iconix with violating both COPPA and the Federal Trade Commission Act by falsely stating in its privacy policy that it would not seek to collect personal information from children without obtaining prior parental consent, and that it would delete any children's personal information about which it became aware. According to the FTC complaint, Iconix knowingly collected personal information from children without obtaining prior parental consent and did not delete it.

In addition to the fine, Iconix is required by the consent decree to delete all personal information it collected in violation of the law.

Our privacy practice is frequently asked by clients to advise them on COPPA compliance, including both policy and practice, for Web sites, SMS, and other media, and we have written about privacy issues in previous blog entries. Please let us know how we can assist you.

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