In a press release earlier today, the Federal Trade Commission (FTC) discussed two separate cases in which the online commercial websites in question (ClixSense.com and I-Dressup.com) allegedly failed to adequately secure the personal data of users of their websites.
In addition, the FTC alleged that the operators of I-Dressup.com violated COPPA (the Children’s Online Privacy Protection Act) by failing to obtain parental consent before collecting personal information from children under 13.
The operators of both ClixSense.com and I-Dressup.com each agreed to settle FTC allegations that they failed to take reasonable steps to secure consumers’ data, which allowed hackers to breach both websites.
It is crucial that online entrepreneurs use appropriate encryption measures to protect users’ personal information. Also, if children under the age of 13 are being asked to provide personal information, prior parental consent is mandatory under COPPA.
Click here to read a copy of the FTC press release.