Disney To Pay $10M Civil Penalty To Settle Alleged Child Privacy Violations

• The government had alleged in a complaint filed in the U.S. District Court for the Central District of California that Disney Worldwide Services Inc. and Disney Entertainment Operations LLC violated the Children’s Online Privacy Protection Act.
• The company is now required to create a program that will ensure it properly complies with COPPA on YouTube going forward, the Justice department said.

The Walt Disney Company (DIS) has agreed to pay a $10 million civil penalty as part of a settlement to resolve allegations that the company violated children’s privacy laws, the Justice Department said.

The government had alleged in a complaint filed in the U.S. District Court for the Central District of California that Disney Worldwide Services Inc. and Disney Entertainment Operations LLC violated the Children’s Online Privacy Protection Act (COPPA) by failing to designate YouTube video content as directed toward children. As a result, Disney, and others acting on Disney’s behalf, targeted advertising toward children on Alphabet Inc's YouTube and unlawfully collected children’s information without parental notice and consent, they alleged.

Other Moves Of Compliance

Disney has now been barred from operating on YouTube in a manner that violates children’s privacy laws. The company is now required to create a program that will ensure it properly complies with COPPA on YouTube going forward, the Justice department said.

“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.

In September, Disney agreed to pay another $10 million to settle allegations from the Federal Trade Commission that it allowed children’s data to be collected for targeted advertising in violation of COPPA rules.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around DIS stayed within the ‘bearish’ territory over the past 24 hours accompanied by ‘low’ message volume

DIS stock has gained over 3% this year and nearly 4% over the past 12 months. 

Also See: Walmart App And Website Down For Users Amid New Year Shopping Rush

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