Sony BMG sued over online child privacy
Sony BMG is being sued by the US government for violating federal rules aimed at protecting the online privacy of children.
It's reported that the music company improperly accepted registrations on its music websites from users who were under 13, without obtaining consent from their parents, according to the lawsuit.
If true, this would mean that Sony was in violation of the Children's Online Privacy Protection Rule, a law enforced by the Federal Trade Commission.
A Sony BMG exec has told Reuters that the company will avoid a court case by agreeing to pay a fine of $1 million, as well as improve its online procedures.