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FTC Settles with Children’s Electronic Toy Maker for Security Program Issues

After a data breach at VTech revealed practices that allegedly violated the FTC Act and the Children’s Online Privacy Protection Act (COPPA), VTech settled for $650,000 and agreed to implement a comprehensive data security program subject to audit for the next 20 years.  VTech makes children’s electronic learning products.  The FTC complaint alleged that VTech’s privacy policy promised that it would encrypt most transmitted information but it did not.  Further, the FTC claimed that VTech failed to comply with COPPA rules regarding the protection of information of children under 13.  This settlement illustrates that the FTC is not letting businesses off the hook for lax information security programs and highlights the importance of accurate privacy policies.  Know what rules apply to your business and be sure that the promises you make to your customers with respect to privacy are accurate.  More information on the FTC settlement can be found here.

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About this Author

Dena Castricone, Murtha Cullina Law Firm, Privacy and Cybersecurity Attorney
Partner

Dena M. Castricone is a member of the Long Term Care and Health Care practice groups.  She is the Chair of the Privacy and Cybersecurity practice group and the Chair of the firm’s Pro Bono Committee.  Prior to joining Murtha Cullina, Dena served as a law clerk to the Chief Justice of the Rhode Island Supreme Court, Frank J. Williams.

Dena’s long term care and health care clients compete in a constantly evolving industry, facing both rising administrative and regulatory burdens and shrinking reimbursement rates. She helps skilled nursing centers, physician groups, home health and...

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