Disney to dole out $10M settlement after violating children's privacy laws, DOJ says

The Walt Disney Company has agreed to pay a $10 million civil penalty to settle a case with the Justice Department (DOJ) over alleged violations of the Children’s Online Privacy Protection Act (COPPA). The DOJ alleged that Disney failed to properly label its YouTube video content for children, leading to the unlawful collection of children’s data without parental consent. Assistant Attorney General Brett A. Shumate stated the DOJ is “firmly devoted to ensuring parents have a say in how their children’s information is collected and used.”

As part of the settlement, Disney must implement a program to ensure its YouTube content complies with COPPA, including labeling content “Made for Kids” when appropriate and informing parents about data collection practices. This case highlights growing concerns and legislative efforts to strengthen online privacy protections for children, with lawmakers proposing amendments to COPPA to extend protections to those under 17.

Disney is not alone in facing COPPA scrutiny; Microsoft settled a similar case for $30 million in 2023, and the FTC recommended a lawsuit against TikTok in 2024. Google, YouTube’s parent company, previously paid $170 million in 2019 to settle COPPA violation allegations.

(Source：Daily Express Us)