Yelp becomes the latest organization to make peace with the Federal Trade Commission in relation to the violation of the Children’s Online Privacy Protection Act (COPPA). According to the reports, Yelp has agreed to pay a fine of approximately $450,000 for the violation of the act. The Children’s Online Privacy Protection Act (COPPA) governs the methods and the extent up to which the various online organizations can ask for personal information from children.
Yelp is an online organization where in users can register and share their thoughts and reviews about a variety of things. But according to the complaint lodged by the FTC, the Yelp mobile application allowed any and everyone to register irrespective of their age during the period of 2009 to 2013. On the other hand the original website did not allow kids of age 9 to 13 years to participate. But due to the mobile application thousands of children registered on Yelp and the organization collected data including the location stats.
This is not the first time when large organizations have been caught in a struggle with FTC. Apple, Google, etc. have all gone through this. Apple settled the lawsuit with a fine of $32.5 million and Google with $19 million.
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