Republication
FTC, May 19, 2020
A digital game maker has settled
Federal Trade Commission allegations that it misled consumers about its
membership in a program aimed at ensuring companies adhere to requirements of
the Children’s Online Privacy Protection Act (COPPA).
In a complaint,
the FTC alleges that Miniclip, S.A., a Swiss-based company that makes
mobile and online digital games, falsely claimed it was a current member of the
Children’s Advertising Review Unit’s (CARU) COPPA safe harbor program. Under
the FTC’s COPPA Rule, companies are deemed in compliance with COPPA if they are
a member and adhere to the guidelines of an FTC-approved COPPA safe harbor
program, such as the Better Business Bureau’s CARU program.
The COPPA
Rule requires companies that collect personal information about children
under 13 to provide parents with notice of their collection practices and
obtain verifiable parental consent.
“Consumers rely on companies to tell them the truth,
especially when it comes to how they treat personal information about
children,” said Andrew Smith, Director of the FTC’s Bureau of Consumer
Protection. “When companies like Miniclip promise consumers that they are an
approved participant of a safe harbor program even after they’re removed, the
FTC will take action.”
Miniclip joined CARU’s safe harbor program in 2009 and remained a member until 2015, when CARU terminated Miniclip’s participation in the program. From 2015 through mid-2019, Miniclip falsely claimed on its website and on its Facebook games privacy policy page that it was a member of CARU’s safe harbor program, according to the FTC complaint.
As part of the proposed settlement Miniclip is
prohibited from misrepresenting its participation or certification in any
privacy or security program sponsored by a government or any self-regulatory
organization, including the CARU COPPA safe harbor program. Miniclip is also
subject to compliance and recordkeeping requirements.
The Commission voted 5-0 to issue the proposed
administrative complaint and to accept the consent agreement with Miniclip. Commissioner Rohit Chopra issued a concurring statement.
The FTC will publish a description of the consent
agreement package in the Federal Register soon. The agreement will be
subject to public comment for 30 days after publication in the Federal Register
after which the Commission will decide whether to make the proposed consent
order final. Instructions for filing comments will appear in the published
notice. Once processed, comments will be posted on Regulations.gov.
NOTE: The Commission
issues an administrative complaint when it has “reason to believe” that the law
has been or is being violated, and it appears to the Commission that a
proceeding is in the public interest. When the Commission issues a consent
order on a final basis, it carries the force of law with respect to future
actions. Each violation of such an order may result in a civil penalty of up to
$43,280.
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