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Swiss Game Developer Settles FTC Allegations Over COPPA Safe Harbor Claims

On May 19, 2020, the Federal Trade Commission (“FTC”) announced that it reached an agreement with Swiss digital game developer Miniclip, S.A. (“Miniclip”) to settle allegations that Miniclip misled consumers about its membership in a COPPA safe harbor program.

Under COPPA, the FTC may approve self-regulatory safe harbor programs that implement the protections of the FTC’s final COPPA Rule. Where a company complies with an approved safe harbor program, it is deemed to comply with COPPA.

In 2009, Miniclip joined the FTC-approved Children’s Advertising Review Unit (“CARU”) COPPA safe harbor program and remained a member of the program until 2015, when CARU terminated Miniclip’s participation. According to the FTC’s complaint, Miniclip continued to claim on its website and on its Facebook Games Privacy Policy page that it was a member of the CARU as late as 2019, and therefore, the FTC alleged, Miniclip made false or misleading representations about its participation in the COPPA safe harbor program.

Under the proposed settlement, Miniclip is prohibited from misrepresenting its membership in or compliance with any privacy or security program sponsored by a government or self-regulatory organization. In addition, Miniclip is subject to compliance and recordkeeping requirements.

The FTC voted 5-0 to accept the consent agreement with Miniclip.

Copyright © 2020, Hunton Andrews Kurth LLP. All Rights Reserved.

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In today’s digital economy, companies face unprecedented challenges in managing privacy and cybersecurity risks associated with the collection, use and disclosure of personal information about their customers and employees. The complex framework of global legal requirements impacting the collection, use and disclosure of personal information makes it imperative that modern businesses have a sophisticated understanding of the issues if they want to effectively compete in today’s economy.

Hunton Andrews Kurth LLP’s privacy and cybersecurity practice helps companies manage data and...

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