Sony Music Entertainment was target of a lawsuit filed on Wednesday December by the U.S. Government, The lawsuit alleges that the music company violated federal rules designed to protect online privacy for children and minors.
The lawsuit claims that Sony Music Company improperly solicited and accepted registrations on its websites from users who were under the age of 13, without parental consent. The lawsuit has been filed in U.S. District Court in Manhattan.
A civil lawsuit also seeks unspecified monetary penalties. The civil suit alleges that Sony Music was in violation of the Children's Online Privacy Protection Rule, enforced by the Federal Trade Commission. The case was presented by the U.S. Attorney's Office in Manhattan.
A Sony executive claimed that the litigation was in the process of being resolved, with the company agreeing to pay a fine of $1 million, to put in place a screening process that complies with the FTC rules and hire a Web compliance officer to monitor the issue.
The executive declined to be identified, saying the news of the settlement was to be officially announced by the government as early as Thursday.
The lawsuit said Sony Music's notice of its information practices on its website did not clearly or accurately disclose how it collected and used the information.