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Sony Settles Kids’ Privacy Complaint for $1 Million

MANHATTAN (CN) - Sony BMG Music Entertainment will pay $1 million to settle a complaint that it violates children's privacy on more than 1000 music Web sites by collecting private information from kids to pull them into fan clubs and enter them in "sweepstakes."

Uncle Sam says Sony violated the privacy of more than 30,000 children.

Prosecutors say Sony illegally collected personal information from kids they enticed to sign up for fan clubs, then "disclosed" the information. Among other things, Sony used the information to send the kids mailers and electronic messages, and to enter them in "sweepstakes" without parents' consent. Prosecutors say Sony knew it was collecting the information from children younger than 13.

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