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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