Disney Settles $10 Million Child Privacy Case

The Walt Disney Company will pay a $10 million penalty to settle allegations of violating child privacy laws. A federal court order bars Disney from operations on YouTube that breach the Children’s Online Privacy Protection Act. Disney must implement a compliance program for future adherence.

The Walt Disney Company has agreed to a $10 million civil penalty to settle allegations of violating child privacy laws, the Justice Department announced on Tuesday.

A federal court order has been issued in the matter involving Disney Worldwide Services Inc and Disney Entertainment Operations LLC, prohibiting Disney from running YouTube operations in a way that contravenes the Children's Online Privacy Protection Act. The order mandates the creation of a compliance program to ensure proper adherence to this privacy law in future operations, according to the department.

The law necessitates that websites, apps, and other online services aimed at children under 13 notify parents about the personal information they collect and obtain verifiable parental consent beforehand. Assistant Attorney General Brett Shumate of the Justice Department's Civil Division emphasized the department's commitment to ensuring parents' involvement in their children's data collection. Disney has yet to respond publicly. The settlement, finalized in September, was initiated by a Federal Trade Commission referral.