Antitrust Law Daily Wrap Up, PRIVACY: Consumer groups charge Topps with violating Children’s Online Privacy Protection Act, (Dec 11, 2014)

A group of consumer groups is urging the FTC to investigate and take enforcement action against The Topps Company, alleging that it violated the Children’s Online Privacy Protection Act (COPPA) by collecting, using, and disclosing personal information from children without giving notice to parents and without attempting to obtain verifiable parental consent, the Center for Digital Democracy (CDD) has announced.

Topps is a candy and trading-card company. Its Bazooka Candy Brands division sells children’s candy such as Bazooka bubble gum and Ring Pop candy. It marketed Ring Pops at its website Candymania.com and through the online contest #RockThatRock. That contest encouraged children to post photos of themselves wearing Ring Pops on Facebook, Twitter, and Instagram for a chance to have their photo used in a music video. Topps used several photographs depicting children clearly under age 13 in a video available on both Candymania and YouTube that has been viewed almost 900,000 times, the consumer groups allege. Following the contest, Topps continued to display children’s photos and contact information on the Ring Pop Facebook page, it is alleged.

The COPPA Rule requires that websites directed to children under age 13 give clear and understandable notice to parents and obtain verifiable parental consent before any personal information is collected, used, or disclosed. Here, the groups allege, Topps made no effort to provide notice to parents about the information collected or to obtain advance, verifiable parental consent as required by the COPPA Rule. Additionally, Topps violated the COPPA Rule by failing to post its children’s privacy policy in a prominent manner, failing to provide a complete and understandable privacy policy, conditioning a child’s participation in the contest on disclosing more information than was reasonably necessary, and retaining children’s personal information for longer than reasonably necessary, the CDD alleges.

“Topps is in violation of provisions of the COPPA Rule that the FTC adopted nearly two years ago to update and strengthen children’s privacy protections,” stated Angela J. Campbell, Co-Director of the Institute for Public Representation, which drafted the request. First, Campbell stated, Topps is collecting photographs of young children, even though the FTC decided to include photographs within the definition of “personal information” requiring parental notice and collection due to the privacy and safety concerns. Second, Topps is using social media to collect and post children’s personal information from which Topps reaps commercial benefits. The Commission amended the COPPA rule to clarify that a child-directed website was responsible for information collected by third parties on its behalf or from which it benefits. Campbell urged the FTC to take action to show that it is serious about enforcing the updated COPPA Rule.

In addition to the CDD, the organizations joining the request for FTC action include the American Academy of Child and Adolescent Psychiatry, the Campaign for a Commercial Free Childhood, the Center for Science in the Public Interest, Consumer Action, the Consumer Federation of America, Consumers Union, Consumer Watchdog, the Rudd Center for Food Policy and Obesity, and the United Church of Christ.

Companies: The Topps Company, Inc.

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