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United States v. Prime Sites, Inc.

United States District Court, D. Nevada

February 12, 2018

UNITED STATES OF AMERICA, Plaintiff,
v.
PRIME SITES, INC., a Nevada corporation, also doing business as EXPLORE TALENT, Defendant.

          CHAD A. READLER Acting Assistant Attorney General U.S. Department of Justice ETHAN DAVIS Deputy Assistant Attorney General GUSTAV W. EYLER Acting Director, Consumer Protection Branch KATHRYN A. SCHMIDT Trial Attorney, Attorneys for Plaintiff United States of America

          MATTHEW H. WERNZ SAMUEL A.A. LEVINE Federal Trade Commission Attorneys for the Federal Trade Commission.

          STIPULATION AND ORDER FOR PERMANENT INJUNCTION AND CIVIL PENALTY JUDGMENT CASE 2:18-CV-00199-JAD-PAL DOCUMENT 2 FILED 02/05/18 PAGE 1 OF 17 ECF NO. 2

          JENNIFER A. DORSEY, U.S. DISTRICT JUDGE DISTRICT

         Plaintiff, the United States of America, acting upon notification and authorization to the Attorney General by the Federal Trade Commission (“Commission”), filed its Complaint for Permanent Injunction, Civil Penalties, and Other Relief (“Complaint”) in this matter, pursuant to Sections 13(b) and 16(a)(1) of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. §§ 53(b) and 56(a)(1), the Children's Online Privacy Protection Act, 15 U.S.C. §§ 6502(c) and 6505(d), and the Commission's Children's Online Privacy Protection Rule (“COPPA Rule”), 16 C.F.R. Part 312. Defendant has waived service of the summons and the Complaint. Plaintiff and Defendant stipulate to the entry of this Stipulated Order for Permanent Injunction and Civil Penalty Judgment (“Order”) to resolve all matters in dispute in this action between them. THEREFORE, IT IS ORDERED as follows:

         FINDINGS

         1. This Court has jurisdiction over this matter.

         2. The Complaint charges that Defendant participated in deceptive acts or practices in violation of Section 5 of the FTC Act, 15 U.S.C. § 45, by misrepresenting the benefits of paid membership in, and Defendant's practices relating to personal information collected from children in connection with, Defendant's online talent search network.

         3. The Complaint also charges that Defendant violated the COPPA Rule by failing to provide notice to parents of its information practices, and to obtain verifiable parental consent prior to collecting, using, or disclosing personal information from children.

         4. Defendant neither admits nor denies any of the allegations in the Complaint, except as specifically stated in this Order. Only for purposes of this action, Defendant admits the facts necessary to establish jurisdiction.

         5. Defendant waives any claim that it may have under the Equal Access to Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action through the date of this Order, and agrees to bear its own costs and attorney fees.

         6. Defendant and Plaintiff waive all rights to appeal or otherwise challenge or contest the validity of this Order.

         DEFINITIONS

         For the purpose of this Order, the following definitions apply:

         1. “Child” means an individual under the age of 13.

         2. “Collects” or “collection” means the gathering of any personal information from a child by any means, including but not limited to:

a. Requesting, prompting, or encouraging a child to submit personal information online;
b. Enabling a child to make personal information publicly available in identifiable form; or
c. Passive tracking of a child online.

         3. “Defendant” means Prime Sites, Inc., a corporation, also doing business as Explore Talent, and its successors and assigns.

         4. “Disclose or disclosure” means, with respect to personal information:

a. The release of personal information collected by an operator from a child in identifiable form for any purpose, except where an operator provides such information to a person who provides support for the internal operations of the website or online service; and b. Making personal information collected by an operator from a child publicly available in identifiable form by any means, including but not limited to a public posting through the Internet, or through a personal home page or screen posted on a website or online service; a pen pal service; an electronic mail service; a message board; or a chat room.

         5. “Internet” means collectively the myriad of computer and telecommunications facilities, including equipment and operating software, which comprise the interconnected worldwide network of networks that employ the Transmission Control Protocol/Internet Protocol, or any predecessor or successor protocols to such protocol, to communicate information of all kinds by wire, radio, or other methods of transmission.

         6. “Obtaining verifiable consent” means making any reasonable effort (taking into consideration available technology) to ensure that before personal information is collected from a child, a parent of the child:

a. Receives notice of the operator's personal information collection, use, and disclosure practices; and
b. Authorizes any collection, use, and/or disclosure of the personal information.

         7. “Online contact information” means an e-mail address or any other substantially similar identifier that permits direct contact with a person online, including but not limited to, an instant messaging user identifier, a voice over internet protocol (VOIP) identifier, or a video chat user identifier.

         8. “Operator” means any person who operates a website located on the Internet or an online service and who collects or maintains personal information from or about the users of or visitors to such website or online service, or on whose behalf such information is collected or maintained, or offers products or services for sale through that website or online service, where such website or online service is operated for commercial purposes involving commerce among the several States or with one (1) or more foreign nations; in any territory of the United States or in the District of Columbia, or between any such territory and another such territory or any State or foreign nation; or between the District of Columbia and any State, territory, or foreign nation.

         9. “Parent” includes a legal guardian.

         10. “Person” means any individual, partnership, corporation, trust, estate, cooperative, association, or other entity.

         11. “Personal information” means individually identifiable information about an individual collected online, including:

a. A first and last name;
b. A home or other physical address including street name and name of a city or town;
c. Online contact information;
d. A screen or user name where it functions in the same manner as online contact information;
e. A telephone number;
f A Social Security ...

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