NEWS: Disney To Pay Millions In Settlement Agreement Over Children’s Privacy Law Violations

Due to breaking child privacy laws, The Walt Disney Company will be paying millions of dollars in a settlement agreement, among other actions.

A Disney spokesperson stated that the company has agreed to the terms of a settlement where children’s data and information was collected. Here’s what we know.

According to the BBC, Disney failed to label some of its content on YouTube appropriately as made for children. This mislabel caused targeted ads to be directed at the children watching the videos, which often led to the kids inputting their personal data and information without parental notice or consent.

Disney has agreed to pay $10 million and to create a program to comply with children’s data protection laws. Brett Shumate, an assistant attorney general in the Justice Department’s civil division, said in a statement, “The Justice Department is firmly devoted to ensuring parents have a say in how their children’s information is collected and used.”

Disney noted that the claims are limited to only certain content on YouTube and not on Disney-owned and operated digital platforms, such as Disney+.

In 2019, Google, YouTube’s parent company, and the Federal Trade Commission reached an agreement that all videos targeted towards children must be labeled as such to prevent targeted ads and personal data collection. This labeling system follows the laws under the 1998 Children’s Online Privacy Protection Act (COPPA), which requires children under 13 years old to have parental consent before supplying any personal information.

Disney failed to label children’s content appropriately on YouTube and now will owe millions of dollars in a settlement of the claims. A new program will also be developed to ensure it complies with these laws and regulations.

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