**Toysmart, FTC Settle ChargesDefunct online toy seller Toysmart.com has agreed it won't sell personal information it collected on consumers as a stand-alone asset, the Federal Trade Commission said Friday.
The agreement settles claims filed by the FTC saying Toysmart, Waltham, MA, attempted to sell information that it collected from consumers, which violates its privacy statement. The agreement also settles new FTC charges filed Friday accusing Toysmart of collecting data from children without parental consent in violation of the Children's Online Privacy Protection Act of 1998, which took effect April 21. Toysmart is majority owned by The Walt Disney Co.,
This was the first complaint the FTC has filed alleging a COPPA violation.
The settlement comes two weeks after the FTC filed suit against Toysmart in U.S. District Court in Massachusetts. Toysmart shut down its operations in May. A bankruptcy sale of the company's assets is scheduled for July 26.