New York cracks down on toymakers tracking children online
The makers of American Girl, Hot Wheels, the Littlest Pet Shop, and other popular children's toys have agreed to pay penalties totaling $835,000 for violations of a federal law that prohibits the unauthorized collection of children's personal information.
A demonstrator showcases the My Little Pony Guardians of Harmony line, a new action and adventure based segment, in the Hasbro showroom during the American International Toy Fair on Feb. 13 in New York.
Charles Sykes/AP
Albany, N.Y.
The聽state聽attorney聽general聽announced聽settlements聽Tuesday聽with聽Viacom,聽Mattel,聽Hasbro聽and JumpStart聽Games聽to聽stop聽them from聽using聽or聽allowing聽tracking聽technology聽on their聽popular聽children's聽websites.
The聽settlements聽require聽Viacom,聽Mattel聽and聽JumpStart聽to pay penalties totaling $835,000 following a two-year investigation into violations of the 1998 federal law that prohibits unauthorized collection of聽children's聽personal information on聽websites聽directed at users under 13.聽Hasbro聽won't pay a penalty because it was enrolled in a Federal Trade Commission-approved online-privacy program that had some problems, according to the聽attorney聽general's office.
All four companies聽allowed聽tracking聽technology聽such as cookies on their聽websites聽in violation of the law, Attorney聽General聽Eric Schneiderman said. Such聽technology聽can be used by marketers and advertisers to target potential customers.
"The way the law is structured, the companies have the primary obligation to police their sites," Schneiderman said. "When we notified them, they took immediate action."
Their聽websites聽include聽Viacom's聽Nick Jr. and Nickelodeon;聽Mattel's聽Barbie, Hot Wheels and American Girl; JumpStart's聽Neopets; and聽Hasbro's聽My Little Pony, Littlest Pet Shop and Nerf.
Hasbro聽said it cooperated with investigators and will closely monitor companies working on its behalf.
"We are rolling out a new, stricter online privacy protection policy for our partners, and enacting new protocols and technology聽to scan our digital properties for any cookies, widgets or other applications that may violate our policy," spokeswoman Julie Duffy said.
Mattel聽said it takes online privacy and security seriously.
"Any time we become aware of a question about whether a Mattel-operated聽website聽is in full compliance with theChildren's聽Online Privacy Protection Act or other laws, we take prompt action to investigate and, if necessary, remedy the situation and look for additional controls to avoid a re-occurrence," spokesman Alex Clark said.
Viacom聽and聽JumpStart聽didn't immediately reply to requests for comment.
"Now聽children聽live online and we have to police the internet as we seek to police our streets," Schneiderman said. "You聽track聽people so you can sell things to them. ... I don't want there to be a dossier on any child that can be used later to scam them."
All four companies signed agreements to regularly scan their聽children's聽websites聽to screen advertisers' or others' data collection practices to ensure legal compliance and update their privacy policies. Penalties are $500,000 for聽Viacom, $250,000 for聽Mattel聽and $85,000 for聽JumpStart.
The New York investigation is continuing. Schneiderman said he hopes other companies with聽websites聽for聽childrenwill now remove similar聽tracking聽by advertisers or other third parties, he said, adding that there's an open debate about the need for a similar law to protect adults' privacy. "It's open season on adults," he said.