Penalty Amount
$150,000
HyperBeard, Inc., a developer of children's apps, agreed to pay $150,000 and delete personal information it illegally collected from children under 13 to settle FTC allegations that it violated COPPA by allowing third-party ad networks to collect persistent identifiers without parental consent. The settlement requires HyperBeard to obtain verifiable parental consent for future data collection and prohibits using the illegally collected data.
HyperBeard must pay $150,000, delete all personal information collected from children in violation of COPPA, obtain verifiable parental consent for any future collection from children, and is prohibited from using or benefiting from the illegally collected data.
In-house legal teams should review all vendor agreements with third-party ad networks, analytics providers, and SDK integrators to ensure they include robust COPPA-compliant clauses requiring verifiable parental consent before collecting persistent identifiers from children under 13. Customer-facing agreements (Terms of Service, Privacy Policies) for child-directed apps must explicitly disclose data collection practices and obtain parental consent. Employee and contractor agreements handling user data should include data handling protocols. Required changes include adding mandatory consent clauses, prohibiting behavioral advertising targeting children without consent, implementing data deletion protocols for illegally collected information, and ensuring all data processing aligns with COPPA's strict requirements for children's data.
Entity
HyperBeard, Inc.
Also known as: HyperBeard
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2020/06/developer-apps-popular-children-agrees-settle-ftc-allegations-it-illegally-collected-kids-data
192 3109 hyperbeard complaint
https://www.ftc.gov/system/files/documents/cases/192_3109_hyperbeard_-_complaint.pdf
192 3109 hyperbeard proposed stipulated order
https://www.ftc.gov/system/files/documents/cases/192_3109_hyperbeard_-_proposed_stipulated_order.pdf
192 3109 hyperbeard statement of chairman simons
https://www.ftc.gov/system/files/documents/public_statements/1576438/192_3109_hyperbeard_-_statement_of_chairman_simons.pdf
192 3109 hyperbeard dissenting statement of commissioner noa
https://www.ftc.gov/system/files/documents/public_statements/1576434/192_3109_hyperbeard_-_dissenting_statement_of_commissioner_noah_j_phillips.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"HyperBeard, Inc."
"pay $150,000"
"Children’s Online Privacy Protection Act Rule (COPPA Rule)"
"by allowing third-party ad networks to collect personal information in the form of persistent identifiers to track users of the company’s child-directed apps, without notifying parents or obtaining verifiable parental consent."
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