Playdom Pays $3 Million FTC Settlement over Acclaim COPPA Violations

May 14, 2011

Disney's wholly-owned social game development studio Playdom has agreed to pay the Federal Trade Commission a settlement totaling $3 million for its part in collecting the private information of underage customers. The settlement is related to games operated by Acclaim (which Playdom bought last year) that the FTC said violated the Children's Online Privacy Protection Act (COPPA). The FTC claims that 403,000 children registered on Playdom's general audience sites between 2006 and 2010, with an additional 821,000 signing up for kid-friendly MMO Pony Stars.

During that time period Acclaim apparently illegally collected the email addresses of children and didn't provide the proper amount of parental controls.

"Let's be clear: Whether you are a virtual world, a social network, or any other interactive site that appeals to kids, you owe it to parents and their children to provide proper notice and get proper consent," said FTC chairman Jon Leibowitz in a statement Friday. "It's the law, it's the right thing to do, and, as today's settlement demonstrates, violating COPPA will not come cheap."

Source: GameIndustry.biz

Comments

Re: Playdom Pays $3 Million FTC Settlement over Acclaim ...

Submitted by Adrian Lopez on Mon, 05/16/2011 - 01:31.

While I believe in protecting children's privacy, I've never liked COPPA insofar as it prevents the collection of personal information even when said information is used for legitimate purposes and is not being sold to third parties.

 
Forgot your password?
Username :
Password :

Shout box

You're not permitted to post shouts.
BearDogg-X: Not game related, but found it interesting: http://www.upworthy.com/the-real-reason-they-still-play-mrs-robinson-on-the-radio?g=2&c=mrp1 - 90% of the music/TV/news media in USA owned by 6 companies.05/20/2013 - 2:38pm
BearDogg-X: @PHX Corp: It's like they're just throwing crap at the wall to see what sticks at this point.05/20/2013 - 12:15pm
Kajex: http://www.rockpapershotgun.com/2013/05/20/neverwinter-money-making-exploit-sees-cryptic-turn-back-time/ My understanding is that none of this was illegal, either.05/20/2013 - 11:42am
PHX Corp: http://www.gamezone.com/news/2013/05/20/violent-video-games-are-bad-for-your-body Most rediclous Study about violent video games ever05/20/2013 - 10:13am
Cecil475: @PHX Corp - The dude's a moron who wouldn't know crap if it came up and kicked him.05/19/2013 - 6:36am
PHX Corp: http://kotaku.com/ea-sports-developer-calls-wii-u-crap-and-nintendo-wa-508481261 EA Sports Canada Moron calls Wii U 'Crap' and Nintendo 'Walking Dead'05/18/2013 - 11:42am
E. Zachary Knight: If the videos are of sufficient quality that people subscribe and watch regularly, then those let's players are providing a service that people want. That is the heart of capitalism. That is not something that should be shamed.05/17/2013 - 8:06am
E. Zachary Knight: I have no idea who either of those people are. However, I still don't see why making a business out of creating let's play videos is somehow evil or wrong.05/17/2013 - 8:04am
MaskedPixelante: It sure is if you're just doing it for the money. See Tobuscus and/or Pewdiepie for what happens when people get into it just for the money.05/17/2013 - 7:30am
E. Zachary Knight: Why is it wrong to make money doing LPs? Why should that be something that should be shamed?05/17/2013 - 6:20am
MaskedPixelante: https://twitter.com/PsychedelicSA/status/335183893214924801 Now here's an interesting, glass half full thought about the Nintendo LP thing. It outs the people who are just doing LPs to make money.05/17/2013 - 5:56am
E. Zachary Knight: I responded in writing to all this "let's play" stuff Nintendo Started. No need for my permission, I won't give it. It's not mine to give. http://divineknightgaming.com/?p=29205/16/2013 - 2:21pm
E. Zachary Knight: Lars Doucet of Levelup Labs has a Reddit going on game companies that allow monetization of Let's Play videos. http://www.reddit.com/r/Games/comments/1egayn/lets_build_a_list_of_game_studios_that_allow/05/16/2013 - 1:04pm
Sleaker: @Imautobot - yah I wouldn't use an emulator as a good first run test of how stable the console is, haha.05/16/2013 - 11:47am
E. Zachary Knight: The 50th person to jump off a bridge is just as dumb if not dumber than the 1st.05/16/2013 - 10:03am
MaskedPixelante: Yeah, let's all jump on Nintendo for doing this, even though they're hardly the first company to do this...05/16/2013 - 9:47am
E. Zachary Knight: Wow Nintendo, this is wrong. http://kotaku.com/nintendo-forcing-ads-on-some-youtube-lets-play-video-50709238305/16/2013 - 8:44am
Imautobot: @Sleaker, further gameplay has revealed that the controller button do stick under the faceplate. Also, The NES emulator (Emuya)keeps crashing on me, though I think a bad ROM is causing it.05/16/2013 - 7:10am
Papa Midnight: AE: I wonder if any other publishers will follow suit.05/15/2013 - 8:12pm
Andrew Eisen: EA is ditching Online Pass. http://venturebeat.com/2013/05/15/ea-kills-its-controversial-online-pass-program/05/15/2013 - 7:20pm
All shouts
 

Be Heard - Contact Your Politician