Data Security at Issue in FTC’s Latest COPPA Action

Last week, the FTC settled an enforcement action against Unixiz, Inc., operator of the website, over several aspects of the site that failed to comply with the Children’s Online Privacy Protection Act (COPPA). I-DressUp has agreed to pay a $35,000 fine to settle the dispute.COPPA regulates the online collection of personal information from children younger than the age of 13. At a high level, COPPA requires that online services that are directed to children or that have actual knowledge that they are collecting personal information from children (e.g., because they ask users for age information), provide parents with notice of their practices regarding information collection/use and secure verifiable parental consent before collecting a child’s personal information.Though less discussed than these consent requirements, COPPA also mandates that operators who collect personal information from children “establish and maintain reasonable procedures…

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