Walt Disney has agreed to pay a $10 million civil penalty as part of a settlement concerning allegations of violating child privacy laws related to videos uploaded on YouTube. The U.S. Department of Justice made the announcement on December 30, stating that Disney Worldwide Services and Disney Entertainment Operations were accused of failing to properly label certain videos as “Made for Kids.” This oversight permitted Disney and its representatives to collect personal information from children under the age of 13 and utilize that data for targeted advertising purposes.
The settlement follows a complaint by the DOJ that highlights the importance of adhering to the Children’s Online Privacy Protection Rule, which mandates that websites and online services aimed at children must inform parents about the data being collected and obtain verifiable parental consent before gathering such information.
As part of the agreement, Disney is required to implement a program aimed at ensuring future compliance with the privacy laws specified in the ruling. Assistant Attorney General Brett Shumate emphasized the Department of Justice’s commitment to guaranteeing that parents maintain control over how their children’s information is handled.
This case originated from a referral by the Federal Trade Commission. At this time, Disney has not released a comment regarding the settlement.
The action taken underscores ongoing regulatory efforts to protect children’s online privacy and reinforces the responsibilities of organizations operating in digital environments targeted toward young audiences.
