Iconix Settles Online Child-Privacy Suit
New York–based Iconix Brand Group will pay $250,000 in civil penalties to settle charges that it violated the Children’s Online Privacy Protection Act (COPPA) and the Federal Trade Commission’s COPPA rule by knowingly collecting, using or disclosing the personal information of approximately 1,000 children online without their parents’ permission.
The charges, which were brought upon Iconix by the FTC, came after Iconix required visitors on some of its brand sites—which include Mudd, Candie’s, Bongo and OP—to provide personal information such as a full name, e-mail address, zip code and sometimes mailing addresses, gender and phone number. The information was required so site visitors could receive brand updates, enter sweepstakes and participate in brand-related online activities. According to the FTC’s complaint, on one Iconix site, www.mymuddworld.com, the company allowed girls to post photos and publicly share personal stories.
COPPA requires operators of Web sites directed to children under 13 years old that collect personal information from them—and operators of general-audience Web sites that knowingly collect personal information from children under 13—to notify parents and obtain their consent before collecting, using or disclosing any such information, the FTC said.
“Companies must provide parents with the opportunity to say ’no thanks’ to the collection and disclosure of their children’s personal information,” said FTC Chairman Jon Leibowitz in a statement. “Children’s privacy is paramount, and Iconix really missed the boat by denying parents control over their kids’ information online.”
As part of its settlement, Iconix agreed to refrain from violating any provision of the COPPA rule and has been ordered to delete all personal information collected and maintained in violation of the act. The company will also link to the FTC’s informational site, www.onguardonline.gov, from any of its sites that collects or discloses children’s personal information or allows users to post public profiles, information, images or interact with other Iconix site visitors.—Erin Barajas
