The FTC announced a settlement with Inconix Brand Group under which Iconix will pay a $250,000 civil penalty to settle FTC allegations that the company violated the Children’s Online Privacy Protection Act (COPPA) and the FTC’s COPPA Rule by knowingly collecting, using, or disclosing personal information from children online without first obtaining their parents’ permission.
Iconix owns, licenses, and markets (offline and on its websites) apparel brands including Mudd, Candie’s, Bongo, and OP. The FTC alleged that Iconix required consumers on certain of its websites 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 order to receive brand updates, enter sweepstakes contests, and participate in interactive brand-awareness campaigns and other website features. On one website, MyMuddWorld.com, Iconix also allegedly enabled girls to publicly share personal stories and photos online. The FTC alleged that in connection with certain of these sites, since 2006, Iconix knowingly collected and stored personal information from approximately 1,000 children without first notifying their parents or obtaining parental consent in violation of COPPA.
Information about the settlement can be found on the FTC’s website, at: http://www.ftc.gov/opa/2009/10/iconix.shtm.