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The company was charged with violating the Children's Online Privacy Protection Act (COPPA) by gathering information about children's birthday's without the consent of their parents.
The FTC announced the settlement on the second anniversary of the law's implementation. Also today, the FTC said it warned more than 50 marketers that their Web sites were in violation of the law and released the findings of a COPPA compliance survey.
COPPA requires marketers to get verifiable parental consent before collecting personal information from children under 13. It also bars Web sites from making a condition for children participating in an online activity that they give up more personal information than is needed participate.
While the FTC said its survey showed that 90% of the 144 children's Web sites it checked had
The FTC said it has sent letters to more than 50 children's Web sites warning them to comply with the rule.
The FTC also said it was extending a key part of the legislation. When COPPA went into effect, the FTC had said it would look at the possibility of electronic means replacing printed notification if technology permitted. Today the FTC said the technology isn't available and that it is extending the current sliding scale for notifications until April 21, 2005.