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Consent DecreeLow Risk

NJ AG Settles with Unixiz for $98,618 Over COPPA Violations and Data Breach

Unixiz, Inc.August 3, 2018New Jersey Attorney General

Penalty Amount

$98,618

Consumers Affected

24,000

Summary

Unixiz, Inc. agreed to shut down its i-Dressup teen social website and pay $98,618 in civil penalties to settle allegations that it violated COPPA by collecting personal information from over 2,500 New Jersey children without parental consent and failed to safeguard user data, leading to a 2016 data breach affecting more than 24,000 New Jersey residents.

Remedy

Unixiz must permanently shut down the i-Dressup website, implement systems to obtain verifiable parental consent, allow parents to review and revoke consent, establish data security policies, and pay $98,618 in civil penalties, with $64,618 suspended for two years upon compliance.

Consent DecreeMonetary PenaltyCompliance ProgramInjunction

Contract Impact

In-house legal teams should review all vendor, customer, and data processing agreements, particularly those involving services directed at minors or handling user data. Focus on clauses governing data collection from children, consent mechanisms (especially verifiable parental consent), data security obligations, breach notification requirements, and data retention/deletion policies. Given the allegations of collecting children's data without consent and failing to safeguard it leading to a breach, contracts must be updated to mandate strict COPPA compliance, implement robust security protocols, require timely breach notifications, and provide parents with clear rights to review and revoke consent.

Contract Search Terms

verifiable parental consentchildren's personal informationdata security measuresdata breach notification clauseuser account information safeguardingdata processing for minorsretention schedule for children's dataopt-out mechanism for parentsprivacy policy for child-directed sites

Laws Cited

COPPANew Jersey Consumer Fraud Act

Violation Types

Entity Details

Entity

Unixiz, Inc.

Also known as: Unixiz

Industry

Social Media

Official Sources

Source Evidence

Entity Name
"Unixiz, Inc., the company that owned and operated the online social website “i-Dressup”"
Fine Amount
"civil penalties in the amount of $98,618"
Laws Cited
"violated the federal Children’s Online Privacy Protection Act (COPPA)"
Laws Cited
"and the New Jersey Consumer Fraud Act"
Violation Types
"failing to obtain verifiable parental consent prior to collecting and processing children’s personal information"
Violation Types
"failing to adequately safeguard user information"

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