Disney Settles for $10 Million Over Child Privacy Violations

Walt Disney agreed to pay a $10 million penalty to settle allegations it violated child privacy laws on YouTube. The DOJ claimed Disney misclassified videos, allowing data collection from children under 13. The settlement mandates Disney to adhere to privacy laws in future uploads.

Walt Disney has agreed to a $10 million civil penalty as part of a settlement to address allegations of child privacy law violations on YouTube, the U.S. Department of Justice announced on Tuesday.

The DOJ complaint alleged that Disney improperly labeled certain videos as "Made for Kids," enabling data collection from children under 13 and using it for targeted advertising. The final order necessitates Disney to establish a program ensuring compliance with the Children's Online Privacy Protection Rule in future YouTube content.

The law mandates that child-directed online services notify parents of data collection practices and obtain parental consent beforehand. Assistant Attorney General Brett Shumate emphasized the DOJ's commitment to protecting parental rights in data collection practices involving minors.

(With inputs from agencies.)