Disney to Pay $10 Million Settlement Over Children’s Privacy Violations on YouTube.

Northeast Radio SD News - South Dakota - The Justice Department announced Tuesday that a federal court has entered a stipulated order resolving a case against Disney Worldwide Services Inc. and Disney Entertainment Operations LLC regarding allegations of privacy violations involving children’s online data.

Under the terms of the settlement, Disney will pay $10 million in civil penalties. The agreement addresses claims that the company violated the Children’s Online Privacy Protection Act (COPPA) by using its popular YouTube video content to collect personal information from children.

COPPA regulations prohibit website and platform operators from knowingly collecting, using, or disclosing personal information from children under the age of 13 without providing notice to and obtaining consent from parents. The government’s complaint, filed in the U.S. District Court for the Central District of California, alleged that Disney failed to properly designate its YouTube content as being directed toward children.

This lack of designation allowed Disney and its affiliates to target advertising toward young viewers and unlawfully collect personal information without the required parental oversight. Disney’s presence on the platform is significant, with its video content amassing billions of views within the United States.

“The Justice Department is firmly devoted to ensuring parents have a say in how their children’s information is collected and used,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department will take swift action to root out any unlawful infringement on parents’ rights to protect their children’s privacy.”

Beyond the financial penalty, the court order prohibits Disney from operating on YouTube in any manner that violates COPPA. The company is also required to establish a formal program to ensure future compliance with federal privacy laws on the platform.

The United States was represented in the matter by Assistant Director Zachary A. Dietert and Trial Attorneys Zachary L. Cowan and Francisco L Unger of the Civil Division’s Enforcement and Affirmative Litigation Branch. Jacqueline Ford represented the Federal Trade Commission (FTC) in the action. https://www.justice.gov/civil/enforcement-affirmative-litigation-branch