Playdom Settles FTC Charges Over Children’s Data

Playdom Inc., an operator of online social games, has agreed to pay $3 million to settle Federal Trade Commission charges it collected and disclosed children’s personal information without parents’ consent, the agency said.

The agreement highlights the risks social media companies face as they navigate privacy and disclosure norms while providing consumer entertainment online. The settlement, a consent decree, reflects neither an admission or denial of the charges by the defendants.

The FTC said Playdom, now a Walt Disney Co. unit, and former executive Howard Marks disclosed information on hundreds of thousands of children between 2006 and 2010 as they operated 20 “virtual world” websites where users could access online games and other activities.

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