News From - Attorney General Eric T. Schneiderman

Protecting Children From Online Tracking Technology

This week, Attorney General Schneiderman announced settlements with Viacom, Mattel, Hasbro and JumpStart Games for their violations of the Children’s Online Privacy Protection Act (COPPA). In a two-year investigation called “Operation Child Tracker,” the Attorney General’s office found that websites operated by these companies had tracking technology that illegally enabled third-party venders to track children’s online activity, which is in violation of COPPA. The office will continue its investigation to hold accountable those who violate the law by tracking children online. 

Speaking On Civil And Religious Rights

On Thursday evening, Attorney General Schneiderman co-hosted a community forum on civil and religious rights in Westchester. At the Church of Jesus Christ of Latter-day Saints, the Attorney General addressed religious freedom and the Religious Rights Initiative, a project of the Civil Rights Bureau that addresses religious rights issues and enforces anti-discrimination laws. 

Remembering the 1971 Attica Prison Uprising

On the 45th anniversary of the Attica prison uprising, Attorney General Schneiderman, Director of the New York State Archives Thomas Rullers and State Education Commissioner MaryEllen Elia, announced the creation of a new public website that hosts a digital collection of documents relating to investigations and litigations arising from the 1971 prison uprising and its aftermath. The Attica uprising began when inmates took several prison guards hostage and took control of parts of the prison. After a four-day siege, the prison was retaken by state police and prison officers. This accessible database will allow all to pay homage to the lives lost and those forever changed as a result of the uprising. 

Have a question, comment, or complaint? Click here. You can also learn more about the various initiatives of the Attorney General's office by visiting our website at ag.ny.gov. You can also call our General Hotline: 800-771-7755. 

MAYOR DE BLASIO, COMMISSIONER O’NEILL, AND COMMISSIONER NIGRO RE: EXPLOSION IN CHELSEA

   We are going to provide an update. I want to go over a couple of key points, and you are going to hear from NYPD Commissioner James O’Neill, Fire Commissioner Dan Nigro. We will be joined momentarily by FBI Assistant Director Bill Sweeney who will be available for questions.

Tonight New York City experienced a very serious incident. All elements of our first responders have been a part of the operation here: NYPD, FDNY, Office of Emergency Management, obviously our federal partners, FBI and others working with us. So all hands are on deck. Injuries are significant. You will hear from Commissioner Nigro on the details of the injuries. But at this point we can confirm that none of those injured are likely to die.

We also want to be upfront saying that there is no evidence at this point of a terror connection to this incident. This is preliminary information. It’s something we will be investigating very carefully but there is no evidence at this point of a terror connection. I also want to affirm that based on what we know at this hour, there is no specific connection to the incident in New Jersey. It is again too early to say anything definitive on those questions, but there is no specific evidence of a connection at this point. I want to say more broadly, there is no specific and credible threat against New York City at this point in time from any terror organization. So as we are analyzing what happened here, we are doing against the backdrop but we have no credible and specific threat at this moment. But we do want to be very clear, the early indications – the initial indications is this was an intentional act. We are going to have a lot more to say in the coming hours as we have more – a detailed analysis – but we believe at this point in time this was an intentional act.

I want to assure all New Yorkers that the NYPD and all other agencies are at full alert and that our anti-terror capacity in particular is at full alert, our Critical Response Command and our other key units, our Strategic Response Group, our Emergency Services Unit – all are on alert and all are dealing with this situation and being vigilant all over the city at this point in time. And we have in this city the most advanced anti-terror capacity of any city in this country and obviously the largest police force of any city in the country – all ready to ensure our safety.

Now, I want to be clear whatever the cause, whatever the intention here, New Yorkers will not be intimidated. We are not going to let anyone change who we are or how we go about our lives. We have the best police force in the country and a number of other key agencies, FDNY, OEM, etcetera making sure we will be safe. We are at this point of course tracing every lead and every potential – it’s too early to give you any details of the investigation because it has just begun over the last few hours. I want to say up front we are not going into a lot of details about what we are finding so far. It is an investigation that will take certainly a few more hours before we can give you more. But, we do want to urge all New Yorkers, anyone who may have information related to this incident, anyone who is an eyewitness, anyone who may have video, the NYPD needs that. Please reach out immediately if you have any information that we can use, call 1-800-5-7-7-TIPS, 1-800-5-7-7-T-I-P-S, if you have any pertinent information.

Finally, a second site as we speak, is being treated by NYPD. It is 27th Street between Sixth and Seventh Avenues. There is an investigation underway and a substantial NYPD presence on that street and that street has been cleared as this investigation continues. With that I want to turn it over to Commissioner James O’Neill.

NYPD Commissioner James O’Neill: Thank you Mr. Mayor. At approximately 8:30 this evening, officers from the 10th Precinct ground patrol, driving westbound on West 23rd Street when they witnessed a large explosion – in front of 1-3-1 West 23rd Street. The officers immediately called for additional units and ambulances. The NYPD Bomb Squad and the FBI Joint Terrorist Task Force were requested to respond.

As of this time, the exact cause of the explosion has not been determined. The investigation into this incident is active and at this time an extensive search is being conducted. As the Mayor spoke, there is an ongoing situation on 27th Street right now. The area around the explosion site is being treated as a crime scene. As of this time there is no evidence to indicate that this explosion is the result of any natural gas cause. Again, the exact nature and cause of this explosion has not yet been determined. As of the most recent information, there have been 29 injuries reported. One of these injuries may be considered serious. Commissioner Nigro will talk about that in a couple of minutes.

The Fire Department is currently assessing the extent of any possible structural damage resulting from this explosion. And as further information is developed, we will provide it and give you updates. Commissioner Nigro.

FDNY Commissioner Daniel Nigro: Well our units heard this actually from their locations and joined the NYPD members on the scene, searched the buildings that were affected and as Commissioner O’Neill said there were 29 injuries here, one considered serious. Twenty–four of these people have been transported to area hospitals with various degrees of scrapes, abrasions from glass, from metal. Thankfully, none of these are life-threatening injuries and the 24 patients that have been removed are not in serious condition, other than the one patient with a puncture.

EDITOR'S NOTE:

A second suspected explosive devise was found, and was dismantled before it could explode.

Sudanese Man Sentenced In Manhattan Federal Court To 7 Years In Prison For Bank Fraud, Credit Card Fraud, And Identity Theft Schemes Exceeding $3 Million

  Preet Bharara, the United States Attorney for the Southern District of New York, announced that ASHRAF LAKOU was sentenced to seven years in prison for bank fraud, credit card fraud, passport fraud, and aggravated identity theft charges in connection with orchestrating a scheme to use stolen victim identification information to make fraudulent credit card purchases and to defraud financial institutions by depositing counterfeit checks into accounts controlled by LAKOU and his co-conspirators.  Through these schemes, LAKOU and his co-conspirators attempted to defraud individuals, businesses, and financial institutions out of more than $3 million.  On April 12, 2016, LAKOU pled guilty before United States Magistrate Judge James L. Cott.  United States District Judge Victor Marrero imposed today’s sentence.  

Manhattan U.S. Attorney Preet Bharara said: “Ashraf Lakou engaged in all means of fraud, from bank and credit card fraud to identity theft and passport fraud.  Today, Lakou received a significant sentence matching the seriousness of his crimes.”

According to the criminal complaint, indictment, and other documents filed in Manhattan federal court, as well as statements made at related court proceedings:

From September 2013 through July 2015, LAKOU and his co-conspirators engaged in a scheme to defraud businesses and financial institutions by obtaining checks made out to legitimate businesses, opening fraudulent bank accounts in the names of the victim businesses, depositing the checks into the fraudulent accounts, and withdrawing funds from the fraudulent accounts.  LAKOU and his co-conspirators carried out this scheme by, among other means, stealing checks from the mail, submitting false documentation in connection with bank account applications, and forging the signatures of other actual persons.

From May 2014 through July 2015, LAKOU and his co-conspirators also engaged in a scheme to commit credit card fraud by using stolen credit card information to make fraudulent purchases of jewelry and other merchandise.  LAKOU and his co-conspirators carried out this credit card fraud scheme by, among other means, adding their own names as authorized users of pre-existing victim credit cards without the knowledge or consent of the victims and by submitting fraudulent applications for new credit card accounts in the names and identities of their victims.     

In addition to the prison term, LAKOU, 27, of Manhattan, was sentenced to three years of supervised release and was ordered to pay $557,894.50 in restitution, $557,894.50 in forfeiture, and a $600 special assessment. 

Zoheb Qamran, 29, of Manhattan, and Jessica Hattar, 26, of Manhattan, have been separately charged in connection with the bank fraud and credit card fraud schemes.  On May 19, 2016, Qamran pled guilty to credit card fraud, bank fraud, and aggravated identity theft charges before United States Magistrate Judge Barbara C. Moses.  On May 6, 2016, Hattar pled guilty to credit card fraud and aggravated identity theft charges before United States Magistrate Judge Sarah Netburn.

Mr. Bharara praised the outstanding efforts of Department of State, Diplomatic Security Service, in the investigation.

Senator Jeff Klein Hosts Sixth Annual First Responder Appreciation Barbeque at Orchard Beach

State Senator Jeff Klein hosted his Sixth Annual First Responder Appreciation Barbeque event in honor of the courageous men and women who risk  their lives each and every day to protect our residents.  Over 300 people from the police Department, Fire Department EMS, from the cities of New York and Mount Vernon were in attendance.

First responders gathered with their families to enjoy the festivities, which included face-painting, carnival games, arts and crafts, music, and lunch. The New York Rangers conducted their “Road Tour Experience,” providing attendees with hockey lessons, games, and giveaways.

Honorees included:

• Police Service Area #8 - Police Officer Derrick Kreckman-
• Police Service Area #8 - Police Officer Wilson Rodriguez
• 41st Precinct -  Clarivel Socola
• 43rd Precinct – Police Officer Ricardo Jimenez
• 43rd Precinct – Police Officer Denisse Caceres
• 45th Precinct - Police Officer Hannah Rahn
• 49th Precinct - Police Officer David Lepore
• 49th Precinct - Police Officer Melvin Rodriguez
• Mount Vernon Fire Department - James Lang
• Engine Company 43
• Ladder  Company 59
• Medic Unit 15 Z – Paramedic Dave Reeve
• Medic Unit 15 Z - Paramedic Matthew Barbella
• Basic Life Support UNIT 20 I – EMT Adam Harrow

Above - A group photo of the Honorees with Senator Jeff Klein and Assemblyman Mark Gjonaj.

Below - A few individual photos.

Above - Some of the over 300 people in attendance.

Below - The New York Ranger Hockey Play area and giveaway tent.

Above - Just known as Robert, he skates, holds an American flag, and twirls a basketball on top of the flagpole at the same time. 

Below - Former Marines were in the house or on the beach with Senator Klein and Assemblyman Gjonaj.

Motorcycle Accident On Hutch Parkway

Above - You can see the remnants of what happens to a motorcycle after it is involved in an accident with a car. This happened just after 2:30 PM Saturday on the southbound Hutch Parkway by the Pelham Parkway exit. That is Coop-City in the background. 

Below - Firemen on scene have lifted the motorcycle up and are removing it to the side of the road. In the foreground the motorcycle rider is being attended to. The unidentified bike rider had his right arm being attended to, and did not seem to be badly injured at the time. The police officer on the scene would not disclose any details of the accident.

Six Bronx Defendants Charged In Manhattan Federal Court With Sex Trafficking Offenses

  Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Police Commissioner of the City of New York (“NYPD”), announced the arrests of MARIA SOLY ALMONTE, a/k/a “Soly Almonte,” a/k/a “Soly La Fuerte,” a/k/a “SoSo,” a/k/a “SoSo Wavy,” a/k/a “Soly Montana,” DAWITT DYKES, a/k/a “Daweezy,” a/k/a “Dawezzy,” MARIA MAGDALENA ALMONTE, DARLENE DELEON, and GABRIELY M. JOSE, a/k/a “Gabriela Vuitton,” a/k/a “Gabby,” on charges of sex trafficking of minors, sex trafficking conspiracy, use of interstate commerce to promote illegal activity, enticement of a minor, and receipt and possession of child pornography.  The sixth defendant, VETTHYA ALCIUS, a/k/a “Theiya Cole,” remains at large.

All of the defendants arrested today will be presented today in Manhattan federal court before U.S. Magistrate Judge James L. Cott.

Manhattan U.S. Attorney Preet Bharara said:  “The defendants allegedly engaged in the sexual exploitation of minors as young as 13 years old.  Protecting children from the predatory conduct of adults who would sexually exploit them for profit is a critically important law enforcement mission to which our office and our law enforcement partners at the FBI and NYPD are committed.”

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “Human trafficking of minors can at times be overlooked by our society because some may believe the children involved have a choice.  But these children aren’t given a vote while the pimps peddle their bodies for money.  It’s a grotesque violation of the law that the FBI and our law enforcement partners won’t stop pursuing until every child is rescued.” 

Police Commissioner William J. Bratton said:  “The defendants trafficked kids for sex as young as the age of 13.  Today, those who, as alleged, took advantage of some of our society's youngest find themselves under arrest.  I commend the work of the NYPD investigators, FBI agents and prosecutors involved in this case who continue to work to protect this city’s children and bring to justice those who profit from the abuse of the city’s youngest and most vulnerable victims.”

According to the Complaint unsealed today in Manhattan federal court[1]:

Since at least 2015, MARIA SOLY ALMONTE, ALCIUS, DYKES, DELEON, and JOSE have helped operate a brothel in New York City, which trafficked minors as young as 13 years old.  The brothel operated at various locations throughout New York, including apartments in the Bronx and Harlem.  Several of the defendants, including MARIA SOLY ALMONTE, MARIA MAGDALENA ALMONTE, and DELEON resided at apartments used for the brothel.  

MARIA SOLY ALMONTE served as the brothel’s proprietor.  ALCIUS, MARIA MAGDALENA ALMONTE, DELEON, and JOSE all were sex workers at the brothel, and DYKES provided security.  The brothel’s sex workers were required to pay MARIA SOLY ALMONTE a fee for prostitution services they rendered at the brothel.  The brothel advertised its services on the internet via Backpage.com and communicated with clients by telephone. 

The NYPD arrested DYKES and ALCIUS in 2015 at one of the brothel locations at which minor sex trafficking victims had worked.  The Complaint refers to five minor victims, all of whom provided prostitution services at one or more of the brothel’s locations.  ALCIUS and JOSE communicated with several of the minor victims about the brothel’s activities through social media, including setting up “dates.” 

The charges in the Complaint against MARIA SOLY ALMONTE, 32, ALCIUS, 22, DYKES, 24, MARIA MAGDALENA ALMONTE, 51, DELEON, 29, and JOSE, 20, are included in the chart below.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Any individuals who believe they have information that may be relevant to the investigation should contact the Federal Bureau of Investigation at 1-212-384-1000 or https://tips.fbi.gov/.

Mr. Bharara thanked the FBI and NYPD for their outstanding investigative work in this matter.

This case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorneys Dina McLeod and Stephanie Lake are in charge of the prosecution.

The charges and allegations contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Count	Defendants	Charge	Mandatory  Minimum  Prison Term	Maximum   Prison    Term
One	MARIA SOLY ALMONTE, ALCIUS, DYKES, DELEON, and JOSE	Sex Trafficking Conspiracy	15 years	Life
Two	MARIA SOLY ALMONTE, ALCIUS, DYKES, DELEON, and JOSE	Sex Trafficking of a Minor	15 years	Life
Three	MARIA SOLY ALMONTE, ALCIUS, DYKES, MARIA MAGDALENA ALMONTE, DELEON, and JOSE	Use of Interstate Commerce to Promote Unlawful Activity		5 Years
Four	ALCIUS	Enticement of a Minor	10 years	Life
Five	ALCIUS	Receipt of Child Pornography	5 years	Life
Six	ALCIUS	Possession of Child Pornography		10 years

Bronx Man Arrested For Possessing And Distributing Child Pornography

In Online Chats with FBI Undercover Agents, Rudy Mena Described Sexually Molesting A Young Child

Preet Bharara, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of RUDY MENA stemming from his possession and distribution of child pornography.  MENA was arrested at his apartment in the Bronx, New York, on September 9, 2016, and was presented today before United States Magistrate Judge James L. Cott in Manhattan federal court. 

Manhattan U.S. Attorney Preet Bharara said:  “Mena is charged with possessing and distributing child pornography, and in online chats with undercover agents, he allegedly boasted about molesting a young child.  Thanks to the dedicated work of law enforcement, Mena is under arrest and can no longer hurt other children.”

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “There is nothing more disturbing than an offender raping and sexually abusing a young child.  I must commend the super-human effort of investigators and prosecutors who are required to view and testify to the content of videos and photos depicting depravity well beyond anything that should exist in our society.”

According to the Complaint[1] filed today in federal court:

Starting in July 2016, an individual who was later identified as MENA communicated through an online messaging application with an undercover detective assigned to the Metropolitan Police Department-FBI (“MPD-FBI”) Child Exploitation Task Force, based in Washington, D.C. (“UC-1”).  Through these exchanges, MENA, using the screen name “ragzbagz,” indicated to UC-1 that he was a 23-year-old New Yorker with access to a young child.  He allegedly sent UC-1 a video purportedly depicting that young child naked, and informed UC-1 in graphic detail that he had molested the child.  MENA also sent UC-1 multiple images of child pornography, including photographs of a prepubescent child’s vagina being touched and penetrated by an adult penis.

On September 9, 2016, MENA communicated online with a New York City-based undercover agent assigned to the FBI’s Crimes Against Children squad (“UC-2”).  MENA informed UC-2 that MENA was primarily interested in children aged 4 through 8.  MENA also sent UC-2 multiple photographs of an infant, at least one of which was taken from a media device that appeared to have been used by MENA.  Later that day, the FBI arrested MENA at his residence in the Bronx, New York. 

 MENA, 23, of the Bronx, is charged with one count of possession of child pornography, which carries a maximum sentence of 20 years in prison, and one count of distribution of child pornography, which carries a maximum sentence of 40 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Any individuals who believe they have information concerning MENA that may be relevant to the investigation should contact the FBI at 1-212-384-1000 or https://tips.fbi.gov/.

 Mr. Bharara praised the efforts of the MPD and FBI in this investigation.  He added that the investigation is continuing.

This case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorney Jonathan Rebold is in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

 

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[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations and every fact described should be treated as an allegation.

A.G. Schneiderman Announces Results Of “Operation Child Tracker,” Ending Illegal Online Tracking Of Children At Some Of Nation’s Most Popular Kids’ Websites

Viacom, Mattel, Hasbro, And JumpStart Violated Children’s Online Privacy Protection Act By Allowing Illegal Third-Party Tracking Technology At Websites For Barbie, Nick Jr., My Little Pony, American Girl, Hot Wheels, And Dozens Of Others 

Companies Agree To Pay Penalties Totaling $835,000, Adopt Comprehensive Reforms To Protect Children From Improper Tracking

   Attorney General Eric T. Schneiderman today announced that his office has reached settlements with Viacom, Inc., Mattel, Inc., Hasbro Inc., and JumpStart Games, Inc., resolving investigations into the companies’ violations of the Children’s Online Privacy Protection Act (COPPA).   

“Operation Child Tracker,” a two-year, first-of-its-kind investigation by the Attorney General’s office, discovered that websites operated by these companies were home to tracking technology that illegally enabled third-party vendors, such as marketers or advertising companies, to track children’s online activity in violation of COPPA.

The companies – whose online properties include some of the most popular children’s websites, including websites associated with Nick Jr. and Nickelodeon (Viacom); Barbie, Hot Wheels, and American Girl (Mattel); Neopets (JumpStart); and My Little Pony, Littlest Pet Shop, and Nerf (Hasbro) – agreed to pay a combined $835,000 in penalties and implement significant reforms.

“Federal law demands that children are off-limits to the prying eyes of advertisers,” saidAttorney General Schneiderman. “Operation Child Tracker revealed that some of our nation’s biggest companies failed to protect kids’ privacy and shield them from illegal online tracking. My office remains committed to protecting children online and will continue our investigation to hold accountable those who violate the law by tracking children.”

“In enacting COPPA, Congress wisely provided for law enforcement by both the FTC and state attorneys general, so that there are multiple cops on the beat protecting children’s privacy,” saidJessica Rich, Director of the Federal Trade Commission’s Bureau of Consumer Protection. “We applaud these important actions by the New York Attorney General’s office, and appreciate their coordination with the Commission.  These settlements send a strong message to companies about the importance of complying with the COPPA Rule.”

“These important settlement agreements are the latest illustration of just how important it is for businesses, parents, and policymakers to be more vigilant about protecting the online privacy of kids and to build in privacy by design,” said Ariel Fox Johnson, Senior Policy Counsel at Common Sense Media, a recognized leader in educating families about online privacy and security. “We applaud Attorney General Schneiderman and the companies for working together to ensure these web sites no longer enable the tracking or commercial profiling of kids and hope that the settlements will bring greater awareness about steps we should all take to make sure that the online world of children is educational, fun, and also safe.”

COPPA prohibits the unauthorized collection of children’s personal information on websites directed to children under the age of 13, including the collection of information used to track a child’s movements across the web. Each of the settling companies allowed third party tracking technologies on their websites in violation of COPPA.

Each of the settling parties has agreed to comprehensive reforms to protect children from improper tracking in the future. These include regular electronic scans to monitor for third party tracking technologies, adopting procedures for vetting third parties’ data collection practices to ensure that they comply with COPPA, and providing notice to third parties when they are operating through a website covered by COPPA.  Three of the companies -- Viacom, Mattel, and JumpStart -- will also provide regular reports to the office regarding the results of their scans and pay penalties totaling $835,000. Viacom will pay $500,000; Mattel will pay $250,000; JumpStart will pay $85,000. Hasbro participated in an FTC-approved “safe harbor” program and will not pay a penalty.

Each of the settling companies cooperated in “Operation Child Tracker” and took remedial measures after being contacted by the Attorney General. 

How Targeted Advertising and Tracking Works

Most online shoppers have encountered advertisements for a product that seems to follow them from website to website. These advertisements are known as online behavioral advertisements or OBA, a form of targeted advertising that selects an advertisement to serve to an individual based on previously collected information about that individual, such as the individual’s Internet browsing history, demographic information, or personal interests. 

One of the most common tracking technologies used for OBA is the web browser cookie, a small text file sent by a website to a user’s computer and stored by the user’s web browser.  Every time the user connects to the website’s server, all of the cookies stored by that website on the user’s computer are retrieved and their values are transmitted to the server. Where a third party is integrated into many websites, cookies can be used to track a user’s browsing history across those websites; each time a user visits a website that incorporates the third party, the user’s browser will transmit information from the user’s cookie to the third party, thereby notifying the third party of the user’s visit to the website. 

The Children’s Online Privacy Protection Act (COPPA)

In 1998, Congress enacted COPPA to protect the safety and privacy of young children online.  COPPA prohibits operators of certain websites from collecting, using, or disclosing personal information (e.g., first and last name, e-mail address) of children under the age of 13 without first obtaining a parent’s consent. The operators of websites directed to children under the age of 13 (a “child-directed website”) and the operators of websites that have actual knowledge that they are collecting personal information from a child under the age of 13 (collectively, “covered operators”) are subject to COPPA.

In July 2013, revised FTC regulations associated with COPPA took effect, expanding the definition of “personal information” to include persistent identifiers that can be used to recognize a user over time and across websites, such as the ID found in a web browser cookie or an Internet Protocol (“IP”) address. The revision effectively prohibits covered operators from using cookies, IP addresses, and other persistent identifiers to track users across websites for most advertising purposes, amassing profiles on individual users, and serving online behavioral advertisements on COPPA-covered websites.  Covered operators can, however, use persistent identifiers to support the internal operations of a website. 

Websites are strictly liable for the collection, use, and disclosure of personal information by independent third parties that are allowed to operate through their websites.   The FTC found that strict liability was necessary in light of the “complex infrastructure of entities” often found operating on websites that have the opportunity to collect personal information from children.  The FTC concluded that the operator of the website should be accountable because it “is in the best position to know which plug-ins it integrates into its site, and is also in the best position to give notice and obtain consent from parents.” Indeed, absent the strict liability standard, “there would be no incentive for child-directed content providers to police their sites or services, and personal information would be collected from young children, thereby undermining congressional intent.” 

Operation Child Tracker

Operation Child Tracker is a first of its kind investigation into illegal online tracking of young children in violation of COPPA.  The investigation examined the most popular children’s websites for unauthorized tracking. The office found that four website operators, Viacom, Mattel, JumpStart, and Hasbro, had allowed third party tracking on their websites prohibited by COPPA. The office’s findings regarding each of the individual website operators are summarized below.

Viacom

Viacom operates the Nick Jr. website, at www.nickjr.com, and the Nickelodeon website, atwww.nick.com. The Nick Jr. website features content associated with animated children’s shows from Viacom’s Nick Jr. television network, including “Dora the Explorer,” “Bubble Guppies,” and “Blues Clues,” which have historically been directed to children 2-5 years old and their parents.  The Nickelodeon website features content associated with animated and live-action shows from Viacom’s Nickelodeon television network, including “SpongeBob SquarePants,” “Teenage Mutant Ninja Turtles,” and “Alvinnn!!!! and the Chipmunks,” which have historically been directed to children 6-11 years old. Millions of people visit the Nick Jr. and Nickelodeon websites each month.

The office of the Attorney General found a variety of improper third party tracking on the Nick Jr. and Nickelodeon websites.  These included the following:

• Many advertisers and agencies that placed advertisements on Nick Jr. and Nickelodeon websites introduced tracking technologies of third parties that routinely engage in the type of tracking, profiling, and targeted advertising prohibited by COPPA. Viacom considered several approaches to mitigate the risk of COPPA violations from these third parties, including removing adult advertising (which was more likely to employ third party tracking technologies) from a child-directed section of the Nick Jr. website and monitoring advertisements for unexpected tracking technology using scanning software on a case-by-case basis. However, Viacom did not timely take either approach and did not implement sufficient safeguards for its users.

• Some visitors to the homepage of the Nick Jr. website were served behavioral advertising and tracked through a third party advertising platform Viacom used to serve advertisements. Although Viacom considered the homepage of the Nick Jr. website to be parent-directed, and thus not covered by COPPA, the homepage had content that appealed to children. Under COPPA, website operators must treat mixed audience pages as child-directed. Viacom also inadvertently introduced the third party advertising platform onto another child-directed section of the Nick Jr. website for a six-week period.

Mattel

Mattel, a designer and manufacturer of toys, operated websites associated with many of its toy brands, which include Barbie, Hot Wheels, Matchbox, American Girl, Max Steel, Monster High, Polly Pocket, and Thomas & Friends. In all, 26 of Mattel’s websites feature content for young children, including online games, animated cartoons, and downloadable content such as posters, computer desktop wallpaper, and pages for young children to color. Millions of people visit Mattel’s websites each month. 

The office of the Attorney General found that a variety of improper third party tracking technologies were present on Mattel’s child-directed websites and sections of websites. These included the following:

• Mattel deployed a tracking technology supplied by a third party data broker across its Barbie, Hot Wheels, Fisher-Price, Monster High, Ever After High, and Thomas & Friends websites.  Mattel used the tracking technology for measuring website metrics, such as the number of visitors to each site, a practice permitted under COPPA. However, the tracking technology supplied by the data broker introduced many other third party tracking technologies in a process known as “piggy backing.” Many of these third parties engage in the type of tracking, profiling, and targeted advertising prohibited by COPPA. 

• A tracking technology that Mattel deployed on the e-commerce portion of the American Girl website, which is not directed to children or covered by COPPA, was inadvertently introduced onto certain child-directed webpages of the American Girl website. 

• Mattel uploaded videos to Google’s YouTube.com, a video hosting platform, and then embedded some of these videos onto the child-directed portion of several Mattel websites, including the Barbie website. When the embedded videos were played by children, it enabled Google tracking technologies, which were used to serve behavioral advertisements.

JumpStart

JumpStart, a developer of educational and entertainment software and websites for children, operates the Neopets website, which it acquired in April 2014. The website enables users to create and care for cartoon virtual pets. Pet owners play simple animated games to earn points, which can be redeemed for virtual food, clothing, and gear for their pets. 

Visitors to the Neopets website can navigate the site and play games with or without an account. Users that choose to register an account must provide a date of birth during the account registration process. As of the end of 2014, there were several million registered accounts that belonged to users under the age of 13. 

The office of the Attorney General found that several improper third party tracking technologies were present on the Neopets website, both for logged-in users under the age of 13 and users who were not logged-in. These included the following:

• JumpStart failed to configure the advertising platform used to serve ads on the Neopets website in a manner that would comply with COPPA. As a result, users under the age of 13 were served behavioral advertising and tracked through the advertising platform. 

• JumpStart integrated a Facebook plug-in into the Neopets website. Facebook plug-ins are integrated into many websites and allow Facebook to track users across the Internet. Facebook uses the tracking information for serving behavioral advertising, among other things, unless the website operator notifies Facebook with a COPPA flag that the website falls is subject to COPPA. JumpStart did not notify Facebook that the Neopets website was directed to children.

Hasbro

Hasbro, a producer of toys and games, operated websites associated with many of its popular toy brands, which include My Little Pony, Littlest Pet Shop, Nerf, and Transformers. Many of these websites featured content for young children, including online games, animated cartoons, and downloadable content such as posters and pages for young children to color. Hundreds of thousands of people visit Hasbro’s websites each month.

The office of the Attorney General found that several improper third party tracking technologies were present on Hasbro’s child-directed websites and sections of websites. These included the following:

• Hasbro engaged in an advertising campaign that tracked visitors to the Nerf section of Hasbro’s website in order to serve Hasbro advertisements to those same users as they visited other websites at a later time, a type of online behavioral advertising prohibited by COPPA known as “remarketing.” 

• Hasbro integrated a third-party plug-in into many of its websites, that allowed users to be tracked across websites and introduced other third parties that engaged in the type of tracking, profiling, and targeted advertising prohibited under COPPA.

It is important to note that Hasbro participated in a safe harbor program. A website operator that complies with the rules of an FTC-approved safe harbor program is deemed in compliance with COPPA.  However, safe harbor programs rely on full disclosure of the operator’s practices and Hasbro failed to disclose the existence of the remarketing campaign through the Nerf website. 

Settlement Agreements Require Comprehensive Reforms

Viacom, Mattel, JumpStart, and Hasbro have each entered into settlement agreements with the office of the Attorney General requiring them to adopt comprehensive reforms.  These include the following:

• Conducting regular electronic scans to monitor for unexpected third party tracking technologies that may appear on their children’s websites.  Three of the companies, Viacom, Mattel, and JumpStart will provide regular reports to the office regarding the results of the scans.

• Adopting procedures for vetting third parties before they are introduced onto their children’s websites to determine whether and how the third parties collect, use, and disclose, and allow others to collect, use, and disclose, personal information from users.

• Providing notice to third parties that collect, use, or disclose personal information of users with information sufficient to enable the third parties to identify the websites or sections of websites that are child directed pursuant to COPPA.

• Updating website privacy policies with either (a) information sufficient to enable parents and others to identify the websites and portions of websites that are directed to children under COPPA or (b) a means of contacting the company so that parents and others may request such information. 

Lessons from Operation Child Tracker

The investigation revealed that website operators have not done enough to ensure that their children’s websites are free of improper third party tracking technologies. For example:

• Website operators are not sufficiently vetting advertisers, advertising networks and other third parties that they allow on their websites to determine whether third parties collect personal information from users or allow others to do so.

• Website operators are not monitoring their websites for unexpected third party tracking technologies that are inadvertently introduced or piggy-back off of other third parties.  

• Website operators are having difficulty keeping up with rapidly changing ad technology to ensure COPPA compliance.