The action against American Pop Corn Company was taken under a
rule of the Children's Online Privacy Protection Act (COPPA), the
fifth action of its kind by the FTC. The Act applies to operators
of commercial web sites and on-line services directed to children
under the age of 13, and to general audience web sites and on-line
services that knowingly collect personal information from
children.
Among other things, the Act requires that web sites get
verifiable consent from a parent or guardian before they collect
personal information from children. It also prohibits sites from
conditioning a child's participation in an activity on the child's
disclosing more personal information than is reasonably necessary
to participate in such activity.
The America Pop Corn Company’s web site, jollytime.com,
contained a "Kids Club" section that featured games, contests, and
jokes targeting children under the age of 13. Without obtaining
parental consent, the company collected personal information,
including names, e-mail addresses and home addresses, from child
visitors.
