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FTC Enforcement Update: "Virtual Worlds" Operators Settle Children's Privacy Violation Charges; Pay $3M Fine

By InfoLawGroup LLP on May 12, 2011

On May 12, 2011, the Federal Trade Commission announced that the operators of 20 online virtual worlds have agreed to pay $3 million to settle charges that they violated the Children's Online Privacy Protection (COPPA) Rule by collecting and disclosing personal information from hundreds of thousands of children under age 13 without their parents' prior consent. The FTC noted that this settlement is the largest civil penalty for a violation of the FTC's COPPA Rule.