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The Department of Justice has announced that Disney will pay a multimillion-dollar civil penalty as part of a court-approved settlement resolving allegations that the company violated federal child privacy laws.
Getting into it: According to the DOJ, Disney has agreed to pay a $10 million civil penalty to settle claims that it violated the Children’s Online Privacy Protection Act (COPPA) by collecting personal data from children under 13 without parental consent. The settlement stems from allegations that Disney failed to properly designate over 300 videos on YouTube, including content featuring popular franchises such as Frozen, Toy Story, and Mickey Mouse, as content directed at children. This misclassification allegedly allowed Disney and its partners to collect data and serve targeted advertisements to young viewers, actions that federal regulators say directly violated COPPA’s requirements for parental notification and consent.
As part of the stipulated order approved by a federal court, Disney is now barred from operating any of its content on YouTube in a way that violates COPPA. The company is also required to establish and maintain a comprehensive data privacy compliance program specifically designed to ensure future adherence to COPPA regulations on YouTube. This program must include regular assessments, staff training, and oversight mechanisms to prevent further violations.
In a statement, Assistant Attorney General Brett A. Shumate said, “The Justice Department is firmly devoted to ensuring parents have a say in how their children’s information is collected and used. The Department will take swift action to root out any unlawful infringement on parents’ rights to protect their children’s privacy.”
As of now, Disney has not issued a public response or comment regarding the settlement.
