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The U.S. Department of Justice says Walt Disney is accused of violating the Children’s Online Privacy Protection Act (COPPA) by mislabeling some YouTube content as not directed at children, allowing the collection of personal data from viewers under 13 without parental consent. To resolve the allegations, Disney has agreed to pay $10 million and implement a comprehensive compliance program to prevent similar violations in the future.
Walt Disney Company will pay $10 million in civil penalties under an agreement with the U.S. Department of Justice (DOJ). The settlement resolves allegations against Disney Worldwide Services Inc. and Disney Entertainment Operations Limited Liability Company (LLC) for violating COPPA, which protects children’s privacy online.
The settlement also requires Disney to establish a comprehensive compliance program for content aimed at children on YouTube. This program will include staff training, restructuring of data handling processes, and enhanced monitoring to ensure future compliance.
The DOJ alleges that Disney failed to properly label some YouTube videos as “directed to children.” This mislabeling allowed personal information from viewers under 13 to be collected without parental consent, enabling targeted advertising.
COPPA prohibits collecting personal information from children under 13 without parental consent. Disney’s alleged violations exposed young viewers to privacy risks and drew both legal and ethical scrutiny.
The case stems from a prior Federal Trade Commission (FTC) investigation, which flagged that some Disney YouTube content targeting children involved unauthorized data collection and targeted advertising, constituting COPPA violations.
A federal court issued a stipulated order enforcing the settlement. Disney is now required to enhance monitoring procedures, strengthen internal oversight, and prevent similar violations in the future.
The penalty against Disney highlights the importance of child privacy online. Digital platforms must ensure proper content labeling, responsible data collection, and compliance with legal standards. The case sets a precedent for the industry, emphasizing that violations carry serious consequences.
Experts note that the Disney settlement underlines the need for accurate content classification, strict oversight of data practices, and adherence to COPPA standards. The case serves as a reminder that child privacy laws are actively enforced and violations can result in substantial penalties.
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