Ten Million Disney Dollars: The Walt Disney Company Agrees on COPPA Violation Settlement with the Department of Justice
The violation applies only to YouTube content and not Disney-owned and operated platforms.
The Department of Justice has announced the previously revealed $10 million settlement between The Walt Disney Company and the Federal Trade Commission (FTC) over a children’s privacy lawsuit.
What’s Happening:
- The U.S. Department of Justice reached a settlement with Disney over alleged violations of the Children’s Online Privacy Protection Act (COPPA).
- Disney will pay $10 million in civil penalties under a federal court order.
- We reported on the settlement back in September, as reported by Axios, but it has now been officially published by the Department of Justice.
- The case involved Disney’s YouTube content, which the government said was not properly designated as directed to children.
- As a result, advertising was targeted at children and personal data was collected without parental notice or consent.
- COPPA requires parental notice and consent before collecting or using personal information from children under 13.
- Disney’s YouTube videos have billions of views in the U.S., increasing the impact of the alleged violations.
- The order prohibits Disney from violating COPPA on YouTube in the future.
- Disney is also required to implement a compliance program to ensure proper COPPA adherence going forward.
- Disney had previously spoken out about the complaint, clarifying that the suit was not targeting Disney-owned and operated platforms.
- Disney also previously committed to strengthening their process in adhering to COPPA on YouTube.
What They’re Saying:
- Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division: “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.”
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