This article first appeared in Cyberlaw Currents, a Frankfurt Kurnit legal blog.
On October 4, 2012, the Federal Trade Commission ("FTC") announced that it had settled charges against Arista Arena, LLC ("Arista"), the operator of fan websites for pop music artists including Justin Bieber, Selena Gomez, Demi Lovato and Rihanna. The FTC's complaint alleged that Arista's website registration processes did not meet the direct notice and parental consent requirements of the Children's Online Privacy Protection Act ("COPPA"), and the Commission's Children's Online Privacy Protection Rule (the "FTC Rule"), thereby violating the Federal Trade Commission Act (the "FTC Act"). According to the complaint, Arista collected, used and/or disclosed information from approximately 101,363 children in violation of the FTC Rule in connection with its operation of RihannaNow.com, DemiLovatoFanClub.net, BieberFever.com, and SelenaGomez.com.In a Consent Decree filed on October 3, 2012, the FTC settled its claims against Arista and ordered Arista to:
- Pay a civil penalty of one million dollars;
- Ensure that it provides direct notice to parents of what information Arista collects from children, how it uses the information, its disclosure practices, and any other disclosures required by COPPA or the FTC Rule;
- Ensure that it obtains verifiable parental consent before any collection, use, and/or disclosure of personal information from children required under COPPA or the FTC Rule;
- Delete all personal information collected and maintained about children in violation of the FTC Rule;
- Provide notices containing a link to the FTC's tips for protecting children's privacy within Arista's privacy policy, the notice to parents, and on the Arista website; and
- Submit compliance reports to the FTC for the next ten years in order to ensure accountability.
This claim against Arista is a reminder of the FTC's stated intention to vigorously enforce existing regulations protecting children's privacy, even at a time when that policy is being reevaluated
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