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FTC Fines Xanga for Violating Kids' Privacy 200

WebHostingGuy writes "As reported by MSNBC, the FTC has fined $1 million dollars for repeatedly allowing children under 13 to sign up for the service without getting their parent's consent. This is the largest penalty ever issued for violations of the Children's Online Privacy Protection Act." From the article: "'Protecting kids' privacy online is a top priority for America's parents, and for the FTC,' FTC Chairman Deborah Platt Majoras said in a statement. 'COPPA requires all commercial Web sites, including operators of social networking sites like Xanga, to give parents notice and obtain their consent before collecting personal information from kids they know are under 13. A million-dollar penalty should make that obligation crystal clear.'" What impact, if any, do you think this will have on other community sites that may not always follow the COPPA statutes?

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