KidsCom.com and The FTC
KidsCom was one of the earliest kids-only sites on the Internet, having been online since February 1995. It was an early test site for a large CPG company interested in determining if kids were online. After a very successful test, KidsCom.com grew into more than just a test site.
On May 13, 1996, the Center for Media Education (CME) filed a petition requesting that the Federal Trade Commission investigate and bring a law enforcement action for alleged deceptive practices in the operation of an Internet Web site called “KidsCom,” then operated by SpectraCom, Inc. However, the FTC decided not to bring charges and the BBB said that KidsCom.com is an example of responsible marketing to children.
The FTC decided not to bring any charges or enforcement action against KidsCom.com for the following reasons: Firstly, KidsCom has modified its website in significant respects. KidsCom now sends an e-mail to parents when children register at the site, providing notice of its collection practices. Parents are provided with the option to object to release of information to third parties on an aggregate, anonymous basis. Most importantly, KidsCom does not release personally identifiable information to third parties without prior parental approval. KidsCom also now discloses to the site visitor the purposes for which it is collecting the information. Secondly, there was no evidence that KidsCom at any time released any personally identifiable information to third parties for commercial marketing or any other purposes. Thirdly, the collection of information from children on the Internet is widespread. The staff of the Center for Media Education determined not to recommend that the FTC initiate a law enforcement action against KidsCom.
Read more about this topic: Kidscom.com, History