Company Pays FTC Fine to Settle Lawsuit Over Its Data Collection From Children

Iconix Brand Group has agreed to pay $250,000 to settle a Federal Trade Commission complaint that the company violated a federal law banning collection of data about children without their parents' consent. The FTC alleged that since 2006, Iconix collected personal information from children on sites for youthful clothing and accessory brands like Candies, Mudd and Bongo. The complaint and proposed settlement were made public Tuesday. In its complaint, the FTC alleges that Iconix collected registration information, including birthdates, of at least 1,000 children age 12 and under and then sent them newsletters and enrolled them in sweepstakes. The FTC also alleged that Iconix allowed users under 13 to upload their photos and post personal information about themselves. The commission said these alleged practices violated the Children's Online Privacy Protection Act, or COPPA, which bans marketers from amassing or spreading personal data about children without their parents' permission. In addition to promising to pay $250,000, Iconix agreed to destroy data collected in violation of federal law and to comply with the privacy law in the future.