[Dataloss] FTC fines xanga.com $1 million over children's info

[lyger]

(fringe related, but if you have kids (or even if you don't...))

For Release: September 7, 2006

Xanga.com to Pay $1 Million for Violating Children's Online Privacy
Protection Rule

Civil Penalty Against Social Networking Site Is Largest Ever for a COPPA
Violation

Social networking Web site operators Xanga.com, Inc. and its principals,
Marc Ginsburg and John Hiler, will pay a $1 million civil penalty for
allegedly violating the Children's Online Privacy Protection Act (COPPA)
and its implementing Rule, under the terms of a settlement with the
Federal Trade Commission announced today.

According to the FTC, Xanga.com collected, used, and disclosed personal
information from children under the age of 13 without first notifying
parents and obtaining their consent. The penalty is the largest ever
assessed by the FTC for a COPPA violation, and is more than twice the
next largest penalty.

The complaint charges that the defendants had actual knowledge they were
collecting and disclosing personal information from children. The Xanga
site stated that children under 13 could not join, but then allowed
visitors to create Xanga accounts even if they provided a birth date
indicating they were under 13. Further, they failed to notify the
children's parents of their information practices or provide the parents
with access to and control over their children's information. The
defendants created 1.7 million Xanga accounts over the past five years
for users who submitted age information indicating they were under 13.

More at http://www.ftc.gov/opa/2006/09/xanga.htm