Sony Music Entertainment now faces penalties reaching $1 million, based on privacy breaches related to online registrations. In a federal court action triggered by the US government, Sony Music is accused of improperly allowing registrations from fans under the age of 13. Under provisions of the Children's Online Privacy Protection Act (COPPA), monitored by the Federal Trade Commission (FTC), sites are required to receive parental permission prior to allowing registrations from children.
An unnamed executive shared details of the fine with Reuters on Wednesday, and an official announcement appears imminent. As part of the settlement, Sony Music will also revamp its registration process, and implement a monitoring process to better comply with the statute. The suit, filed with the US District Court in Manhattan, also lists a number of other privacy violations, including a failure to disclose how collected information is being used.
Story by news analyst Alexandra Osorio.
source:http://digitalmusicnews.com/stories/120908coppa/view
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