Washington – Virtual worlds and online games publisher
Playdom has agreed to pay $3 million to settle charges from the U.S. Federal
Trade Commission (FTC), that it illegally collected and disclosed personal
information from hundreds of thousands of children under 13, a violation of the
Children’s Online Privacy Protection Act (COPPA).

The FTC charged that Playdom
operated 20 virtual worlds with online games, including 2 Moons, 9 Dragons, My
Diva Doll and Pony Stars, which attracted scores of children.

Playdom violated
the law when it allowed these children to register on the sites before
obtaining parental consent, and also when it allowed children to disclose
personal information via the profile pages and community forums on the sites.

In addition to the $3 million settlement, Playdom signed a decree stating is
will not violate COPPA in the future.

The FTC noted that Playdom acquired the
sites in question when it bought Acclaim Games in May 2010. Disney then
acquired Playdom in August 2010.


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