FTC pops $1m fine at social network site

Posted on 12 Sep 2006 at 12:49

Social networking site Xanga has agreed to pay a fine of $1 million after allegations that collected, used and disclosed the personal details of children under 13.

The US Federal Trade Commission (FTC) claimed that despite a policy that banned anyone under 13 joining, the website knowingly allowed the children to create accounts. This, said the FTC, is an offence under the Children's Online Privacy Protection Act (COPPA).

The FTC stressed that the payment and an agreement to be monitored for five years does not amount to an admission of guilt by Xanga or its founders, Marc Ginsberg and John Hiler.

'Protecting kids' privacy online is a top priority for America's parents, and for the FTC,' said FTC chairman Deborah Platt Majoras. 'COPPA requires all commercial websites, including operators of social networking sites like Xanga, to give parents notice and obtain their consent before collecting personal information from kids they know are under 13. A $1m penalty should make that obligation crystal clear.'

Author: Simon Aughton

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