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Federal Government Fines Disney $10 Million After Company Violated Children’s Privacy

in Entertainment, The Walt Disney Company

Posted on by Jess Colopy 3 Comments
Aerial view of the Walt Disney Company water tower, proudly showcasing its logo. The iconic tower stands amidst office buildings and lush greenery under a clear blue sky, evoking a sense of timeless magic even in the digital age.

Credit: Disney

The Walt Disney Company has agreed to pay a $10 million penalty to the U.S. Department of Justice after allegedly violating children’s privacy laws with content on its YouTube platform. The federal government released a statement confirming the news on Tuesday, December 30.

The Walt Disney Company Allegedly Violates Children’s Privacy Laws

Exterior of The Walt Disney Company office building.
Credit: Disney

The Children’s Online Privacy Protection Act (COPPA) prevents websites and companies from knowingly collecting, using, or disclosing personal information from children under 13 without notifying and receiving explicit consent from those children’s parents.

A complaint filed in the U.S. District Court for the Central District of California alleged that Disney Worldwide Services Inc. and Disney Entertainment Operations LLC, and others acting on their behalf, violated COPPA by “targeted advertising toward children on YouTube and unlawfully collected children’s information without parental notice and consent.”

“The Justice Department is firmly devoted to ensuring parents have a say in how their children’s information is collected and used,” Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division said. “The Department will take swift action to root out any unlawful infringement on parents’ rights to protect their children’s privacy.”

Disney Pays $10 Million

A person sits at a desk facing a computer with the YouTube logo on the screen. Next to the monitor is an image of Mickey Mouse dressed in a tuxedo, smiling and waving as Disney is hit with multiple lawsuits.
Credit: Inside the Magic

On December 30, the Justice Department announced that a federal court had entered a stipulated order resolving the case with a $10 million civil penalty. In addition to paying the multi-million-dollar settlement, the federal government has ordered Disney not to continue operating in a manner that violates COPPA.

The Walt Disney Company must create a program that ensures it, and any organization acting on its behalf, complies with COPPA on YouTube moving forward.

Disney has reached a $10 million settlement with the Department of Justice regarding not designating YouTube videos “for kids”

Disney has billions of views on YouTube in the United States alone, making it one of the most popular media companies on the platform. Ad revenue is how most YouTube channels generate a profit, but the YouTube Kids app aims to minimize advertising and data collection on child-oriented content.

Is The Walt Disney Company paying enough for allegedly violating children’s privacy laws? Share your thoughts with Inside the Magic in the comments. 

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