Explained: Why Disney is paying $10 million to settle a US lawsuit

Disney has agreed to pay $10 million to settle a lawsuit brought by the US government concerning its handling of children’s data online, particularly on YouTube. The Department of Justice accused Disney of violating the Children’s Online Privacy Protection Act (COPPA) by failing to properly identify videos intended for children, which allowed the company to collect data and serve targeted advertisements without parental consent. COPPA prohibits companies from collecting personal data from children under 13 without verifiable parental permission.

The settlement, approved by a federal court, requires Disney to pay the $10 million penalty and adhere to stricter COPPA compliance measures on YouTube. Assistant Attorney General Brett A Shumate emphasized the Justice Department’s commitment to protecting parental rights regarding their children’s online data.

This case reflects a broader trend of increased scrutiny and enforcement of children’s online privacy regulations. Recent years have seen similar penalties levied against other major companies like Microsoft, and the Federal Trade Commission is pursuing legal action against TikTok for alleged COPPA violations. Furthermore, the Senate recently passed an updated version of COPPA aiming to extend stronger online safety protections to individuals under 17.

(Source：Business Standard)