1、For Release: 10/20/2009Iconix Brand Group Settles Charges Its Apparel Web Sites Violated Childrens Online Privacy Protection ActCompany Will Pay $250,000 Civil PenaltyIconix Brand Group, Inc. will pay a $250,000 civil penalty to settle Federal Trade Commission charges that it violated the Childrens
2、Online Privacy Protection Act (COPPA) and the FTCs COPPA Rule by knowingly collecting, using, or disclosing personal information from children online without first obtaining their parents permission.Iconix owns, licenses, and markets both offline and online several popular apparel brands that appeal
3、 to children and teens, including Mudd, Candies, Bongo, and OP. Iconix required consumers on many of its brand-specific Web sites to provide personal information, such as full name, e-mail address, zip code, and in some cases mailing address, gender, and phone number as well as date of birth in orde
4、r to receive brand updates, enter sweepstakes contests, and participate in interactive brand-awareness campaigns and other Web site features. Since 2006, Iconix knowingly collected and stored personal information from approximately 1,000 children without first notifying their parents or obtaining pa
5、rental consent, according to the FTCs complaint. On one Web site, MyMuddW, Iconix also enabled girls to publicly share personal stories and photos online, according to the complaint.“Companies must provide parents with the opportunity to say no thanks to the collection and disclosure of their childr
6、ens personal information,” said FTC Chairman Jon Leibowitz. “Childrens privacy is paramount, and Iconix really missed the boat by denying parents control over their kids information online.”COPPA requires operators of Web sites directed to children under 13 years old that collect personal informatio
7、n from them and operators of general audience Web sites that knowingly collect personal information from children under 13 to notify parents and obtain their consent before collecting, using, or disclosing any such information. One requirement of the COPPA Rule is that Web site operators post a priv
8、acy policy that is clear, understandable, and complete.The Commissions complaint also charges Iconix with violating both COPPA and the Federal Trade Commission Act by falsely stating in its privacy policy that it would not seek to collect personal information from children without obtaining prior pa
9、rental consent, and that it would delete any childrens personal information about which it became aware. According to the FTC complaint, Iconix knowingly collected personal information from children without obtaining prior parental consent and did not delete it.The settlement order requires Iconix t
10、o pay a $250,000 civil penalty. The order also specifically prohibits Iconix from violating any provision of the FTCs COPPA Rule, and requires the company to delete all personal information collected and maintained in violation of COPPA. The company is required to distribute the order and the FTCs “
11、How to Comply with the Childrens Online Privacy Protection Rule” to company personnel. The order also contains standard compliance, reporting, and record-keeping provisions to help ensure the company abides by its terms.To provide resources to parents and their children about COPPA and about childre
12、ns privacy in general, the order requires the company to link to the Commissions www.OnGuardOnline.govWeb site on any Iconix Web site that collects or discloses childrens personal information, and on any Iconix site that offers the opportunity to upload writings or images, to create publicly viewabl
13、e user profiles, or to interact online with other Iconix site visitors.The Commission vote approving the complaint and consent order was 4-0. On behalf of FTC, the Department of Justice is filing the complaint today in the U.S. District Court for the Southern District of New York, and submitting the
14、 consent order for the courts approval.NOTE: The Commission authorizes the filing of a complaint when it has “reason to believe” that the law has or is being violated, and it appears to the Commission that a proceeding is in the public interest. A complaint is not a finding or ruling that the defend
15、ant has actually violated the law. A consent order is for settlement purposes only and does not constitute an admission of a law violation. Consent orders have the force of law when signed by the judge.The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair busi
16、ness practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTCs online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more th
17、an 1,700 civil and criminal law enforcement agencies in the U.S. and abroad. The FTCs Web site provides free information on a variety of consumer topics.MEDIA CONTACT:Betsy Lordan Office of Public Affairs202-326-3707STAFF CONTACT:Phyllis H. Marcus or Mamie KressesBureau of Consumer Protection202-326-2854 or 2070(Iconix NR.wpd)(FTC File No. 0923032)
