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Warner Section to be Fined by FTC
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A segment of Warner Music Group Corp. could be fined $1 million by the Federal Trade Commission for violating a law for child privacy when operating fan websites for musicians such as Demi Lovato, Justin Bieber, Rihanna and Selena Gomez.

During the annual Children’s Advertising Review Unit meeting on Wednesday in New York, the FTC Commissioner, Edith Ramirez, discussed the proposed settlement between the two entities. The settlement would still have to be approved by a judge.

  
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According to Ramirez, Artist Arena, a website operator collected names, street addresses, email addresses and cell phone numbers of over 100,000 kids at the age of 12 or younger.

“BieberFever.com got off to a bad start … and things got worse from there,” Ramirez said in prepared remarks.

The complaint was filed in the U.S. District Court in New York on Tuesday and it alleges that the website would require users to enter their birthdates and even required those under the age of 13 to enter their parents’ email address to confirm. The complaint then said that after just one month, the website permitted underage users to register on it and also pay for membership without even sending a confirmation email to the parents of the children. These actions violated the Children’s Online Privacy Protection Act.

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