Skid-e-kids and the FTC announced a settlement this week over FTC charges that Skid-e-kids and its operator Jones O. Godwin violated the Children's Online Privacy Protection Rule (COPPA Rule) and the FTC Act. Skid-e-kids (www.skidekids.com) is a social networking site that bills itself as the "Facebook and Myspace for Kids," with a target audience of kids ages 7-14.
The settlement requires that Godwin and the site comply with the rules and destroy all personal information collected in violation of the rules. The settlement also requires that for five years Skid-e-kids must link to FTC educational privacy materials and retain a privacy professional or join an FTC-approved safe harbor program. In addition, the settlement imposes a civil penalty of $100,000, all but $1,000 of which will be suspended if the Godwin provided truthful information about his financial condition and if Godwin and the site comply with the settlement order's oversight provision.