Xanga.com Fined $1 Million for Disclosing Children's Data

The FTC accounced this today:

Social networking Web site operators Xanga.com, Inc. and its principals, Marc Ginsburg and John Hiler, will pay a $1 million civil penalty for allegedly violating the Children’s Online Privacy Protection Act (COPPA) and its implementing Rule, under the terms of a settlement with the Federal Trade Commission announced today.

According to the FTC, Xanga.com collected, used, and disclosed personal information from children under the age of 13 without first notifying parents and obtaining their consent. The penalty is the largest ever assessed by the FTC for a COPPA violation, and is more than twice the next largest penalty.