May 16, 2011 - 11:05 AMT
Walt Disney Company to pay $3mln for violating children online privacy

The Walt Disney Company has agreed to pay a $3 million for violating the Federal Trade Commission rules designed to protect the online privacy of children under age 13, according to ReadWriteWeb.

FTC said several Playdom sites that were aimed at young audiences illegally collected and then disclosed personal data in violation of the Children's Online Privacy Protection Act (COPPA). These sites included Pony Stars, 2 Moons, 9 Dragons, Age of Lore, and My DIva Doll.

The FTC complaint says that some 821,000 children registered with Pony Stars between 2006 and 2009 and another 403,000 signed up for Playdom's other online virtual worlds. These sites collected children's names, ages, and email addresses and allowed them to post that personal information publicly online - including their real names and locations. The FTC charged that the company failed to get parents' consent before collecting or disclosing this information.

A Disney spokesperson said in a statement that it was "pleased that Playdom and the FTC have now resolved this matter amicably."