Disney to pay $10 Mn to settle child privacy violations on YouTube

Walt Disney has agreed to pay a $10 million civil penalty to settle allegations that it violated U.S. child privacy laws by improperly handling personal data in some videos uploaded to YouTube, the Department of Justice announced on Tuesday.

The DOJ complaint alleged that Disney Worldwide Services and Disney Entertainment Operations failed to label certain YouTube videos as “Made for Kids.” This oversight allowed Disney and affiliated parties to collect personal information from children under 13 and use it for targeted advertising.

As part of the settlement, which finalizes an agreement first announced in September, Disney is required to establish a program to ensure ongoing compliance with the Children’s Online Privacy Protection Rule (COPPA) on YouTube. The law mandates that websites, apps, and other online services aimed at children obtain verifiable parental consent before collecting personal data.

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Assistant Attorney General Brett Shumate of the DOJ’s Civil Division said, “The Justice Department is firmly devoted to ensuring parents have a say in how their children’s information is collected and used.”

The settlement marks one of the largest penalties in recent years related to COPPA violations and highlights the growing scrutiny over how major media companies collect and use data from young audiences. Disney’s compliance program will be closely monitored to prevent future violations and protect children’s privacy on digital platforms.

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