Disney to Pay $10M Penalty for Alleged Children’s Privacy Violations
The Justice Department has announced a significant settlement involving Disney Worldwide Services Inc. and Disney Entertainment Operations LLC. The federal court’s stipulated order mandates that Disney pay a $10 million civil penalty. This action stems from allegations that the company violated the Children’s Online Privacy Protection Act (COPPA).
Details of the Settlement
The Federal Trade Commission (FTC) accused Disney of breaching COPPA regulations related to its YouTube video content. COPPA prohibits the collection of personal information from children under 13 without parental consent. The complaint alleges that Disney failed to properly classify its YouTube content as aimed at children, which led to the unlawful collection of children’s information.
Reasons for the Violation
- Disney improperly designated its YouTube content.
- Targeted advertising directed toward children occurred without obtaining parental notice and consent.
Disney’s YouTube videos enjoy immense popularity, boasting billions of views across the United States. The widespread reach of this content escalates the importance of parental control and privacy protections.
Government Response
Assistant Attorney General Brett A. Shumate emphasized the government’s commitment to safeguarding children’s privacy. “The Justice Department is firmly devoted to ensuring parents have a say in how their children’s information is collected and used,” he remarked.
In addition to the financial penalty, the court order prohibits Disney from operating on YouTube in violation of COPPA. Disney is also required to implement a new compliance program to ensure adherence to COPPA regulations in the future.
Representation in the Case
The United States is represented by Assistant Director Zachary A. Dietert, along with Trial Attorneys Zachary L. Cowan and Francisco L. Unger from the Civil Division’s Enforcement Section. Jacqueline Ford is representing the FTC in this case.
Conclusion
This settlement reflects ongoing efforts to hold companies accountable for protecting children’s privacy online. As digital content continues to expand, compliance with COPPA remains critical for companies like Disney that cater to younger audiences.
