The Federal Trade Commission has extracted a $130,000 fine from social networking site imbee.com, targeting tweens ages 8 to 14, to settle charges that its data collection practices violated federal
law. The site allegedly collected and stored information from children 12 and younger without their parents' consent--which is impermissible under the 1998 Children's Online Privacy Protection Act.
The settlement comes at a time of increasing interest in online data collection. Late last year, Texas attorney general Greg Abbott also accused two Web companies--gaming fan site GamesRadar.com and cartoon doll site
TheDollPalace.com--of violating the Children's Online Privacy Protection Act.
--Wendy Davis