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Sony BMG is being sued in the US for collecting data on children without their parents' consent. A $1m payout to settle the suit is reportedly close to agreement, Bloomberg reports.

Information on 30,000 kids under 13 was allegedly collected by music label Sony BMG Music Entertainment in violation of the Children's Online Privacy Protection Act. A lawsuit, filed by US consumer watchdog the Federal Trade Commission in a New York court on Wednesday, seeks an injunction against Sony and unspecified damages.

The legal claims that Sony collected the information from youngsters registering with any of the 1,100 music and band-related websites it has run since 2004, despite claims that pre-pubescent teens weren't allowed to sign up. Potentially sensitive data including names, addresses, email addresses, dates of birth and even mobile phone numbers was reportedly logged.

Citing unnamed insiders as a source, Bloomberg reports that Sony BMG is on the verge of agreeing a settlement. Sony is reportedly offering to hire a compliance officer to establish procedures to prevent the collection of data on kids, and pay $1m in fines, in order to settle the lawsuit. ®

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