Children's Privacy Protection and Parental Empowerment Act of 1996 - Amends the Federal criminal code to prohibit specified activities relating to personal information about a child (defined as a person under age 16), including knowingly: (1) selling such information (by a list broker) without the consent of a parent of that child, knowing that such information pertains to a child; (2) using prison inmate labor for data processing of personal information about children; and (3) distributing or receiving any such information, knowing or having reason to believe that the information will be used to abuse or physically harm the child.

Authorizes civil actions by children or their parents with respect to whom a violation of this Act occurs. Directs the court to award a prevailing plaintiff a reasonable attorney's fee as part of the costs.