Disney agreed to pay $10 million in civil penalties to settle a federal case litigating its alleged violations of a children’s online privacy law on YouTube, the Department of Justice announced on Tuesday.
A federal court entered a stipulated order involving Disney Worldwide Services and Disney Entertainment Operations, which were accused of violating the Children’s Online Privacy Protection Act.
Enforced by the Federal Trade Commission, the federal law prohibits websites from knowingly collecting, using, or disclosing personal information from minors under age 13 unless they obtain parental consent before collecting such information.
Disney allegedly failed to say its YouTube video content was directed toward children and unlawfully collected children’s data without parental notice and consent, the federal government argued in the complaint. As mentioned in the case, the entertainment giant also targeted advertising toward children.
The stipulated order prevents Disney from operating on YouTube in violation of COPPA. It also requires Disney to create a program that ensures compliance with the law on YouTube.
“The Justice Department is firmly devoted to ensuring parents have a say in how their children’s information is collected and used,” DOJ Civil Division Assistant Attorney General Brett Shumate said in a statement. “The Department will take swift action to root out any unlawful infringement on parents’ rights to protect their children’s privacy.”
The Washington Examiner contacted Disney for comment.
The settlement was filed in court nearly four months after Disney was ordered to pay the $10 million fine to resolve allegations made by the FTC. The agency said Disney unlawfully collected personal information from children who viewed “Made for Kids” videos on YouTube without notifying parents or obtaining parental consent.
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In September, a Disney spokesperson said the settlement was limited to the distribution of its YouTube content and did not involve any Disney-owned platforms. The company signaled full compliance with COPPA in the future.
“Disney has a long tradition of embracing the highest standards of compliance with children’s privacy laws,” the spokesperson told Reuters at the time, “and we remain committed to investing in the tools needed to continue being a leader in this space.”
