FTC settles charges against children's social network

The Federal Trade Commission settled charges on Tuesday against a website accused of collecting personal information from roughly 5,600 children without parental consent in violation of the Children’s Online Privacy Protection Act (COPPA).

The site, www.skidekids.com, bills itself as the "Facebook and Myspace for kids" according to the FTC, which also charged the operator, Jones Godwin, with making deceptive claims in the site's privacy policy about its collection of information.

According to the FTC, the site targets children ages 7-14 and allows them to create profiles, post information, send messages, upload pictures and videos, and friend each other similar to sites like Facebook.

The FTC’s COPPA Rule requires that websites post a clear privacy policy and notify parents and obtain consent before they collect, use or disclose personal information from kids under 13.

The FTC claims the site's privacy policy said it requires users' to provide their parents' email address when registering, but the complaint argues children were allowed to register without providing their parents email or obtaining consent.

The settlement bans the site from future violations of COPPA and from misrepresenting its practices regarding the collection and use of children’s personal data. It also requires Godwin to destroy the information he collected from children in violation of COPPA, to link to online educational materials and retain an online privacy expert to oversee any COPPA-covered websites he may operate.

The order includes a $100,000 civil penalty, though all but $1,000 will be suspended if Godwin provided truthful information about his financial condition and complies with the oversight provisions of the settlement.