FTC Settles With 2 Websites for Privacy Infractions, Cites Stronger Orders
An online rewards website and a children’s dress-up games site failed to properly secure consumer data and allowed hackers to breach both sites, the FTC alleged in two settlements announced Wednesday with a 5-0 vote. A settlement with i-Dressup.com included…
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a $35,000 civil penalty and alleged Children’s Online Privacy Protection Act violations. Unixiz, owners of i-Dressup.com, didn’t secure parental consent for collecting data on children under 13, the FTC said. The operators also transmitted personal information in plain text and failed to secure data that led to a breach, the agency said. Owner of online rewards ClixSense.com, James Grago, deceived consumers about data protections, while failing to implement “minimal data security measures,” the FTC said in a settlement that doesn’t include a fine. Future violations of the settlements carry civil penalties up to $42,530 per offense. Neither company commented. The agency is committed to strengthening its consent order, particularly on privacy violations, said a statement. The deals included new requirements that “go beyond requirements from previous data security orders,” the commission said: a senior officer must provide “annual certifications of compliance” to the agency, and the defendants are barred from “making misrepresentations to the third parties conducting assessments of their data security programs.”