I'm a member
I joined so I could offer tech support to my daughters (it was a little buggy at one point when the Dojo was introduced). I have my own little private rule that I don't interact with other penguins.
It is safe. It's moderated both by tech support (there's a UK team in Brighton) AND members. After so many weeks they can apply for special 'spy' status which as well extra features asks them to report any penguins using inappropriate language, passing 'phone numbers. The account can then be blocked or closed, and IP addresses are also captured. To be honest, I've never seen any such language.
Penguins can chat to each other, but everything appears on the screen for everyone to see. Private messages can be sent, but they are preset ones ("See you at the Ski Slope" type thing) so there is no way of sending hidden dubious messages.
You can also set whether your child can chat freely or only use pre-set lines....etc
. When you / your child logs in, they select an island to go to. Their home igloo appears on whichever Island they select. On some islands, as bcookerblum says, on screen chat is limited to preselected phrases, and parents can limit children just to those islands.
I'm not into computer games, use Facebook only a little, but do quite enjoy Club Penguin in my own rights. And I've got a purple Puffle sweat-shirt!