Disney Worldwide Services and Disney Entertainment Operations have settled allegations concerning violations of federal data-collection laws aimed at protecting children, agreeing to pay $10 million in civil penalties. The settlement, announced by the Department of Justice (DOJ) on Tuesday, follows a complaint filed in a California district court, where the DOJ contended that Disney improperly labeled certain videos on YouTube, allowing for targeted advertising toward children without required parental consent.
The lawsuit claims this mislabeling breached the Children’s Online Privacy Protection Act (COPPA), which mandates that operators must obtain parental consent before collecting personal information from children under 13. Assistant Attorney General Brett A. Shumate emphasized the DOJ's commitment to protecting parental rights regarding children's privacy in a press release.
Disney stated that this settlement pertains only to specific distributions of content on YouTube and does not involve its own digital platforms. The DOJ highlighted that Disney's YouTube content has accumulated billions of views, with videos featuring characters from popular films such as The Incredibles and Frozen being among those improperly labeled.