Disney to pay $10 million to settle child privacy violations tied to YouTube content

The U.S. Justice Department announced that Disney has agreed to pay $10 million to resolve allegations that it violated federal child privacy protections through its YouTube video content, according to court filings and federal officials.

The settlement was announced on Tuesday and stems from a case filed in the U.S. District Court for the Central District of California against Disney Worldwide Services Inc. and Disney Entertainment Operations LLC, collectively referred to as Disney.

According to the Justice Department, the companies failed to properly designate certain YouTube videos as directed toward children, leading to the unlawful collection of personal information from children under the age of 13 without parental notice or consent.

Federal prosecutors alleged that Disney’s failure to label its content appropriately resulted in targeted advertising being directed at children on YouTube, in violation of the Children’s Online Privacy Protection Act (COPPA).

COPPA restricts the collection and use of personal data from children unless parents are informed and give consent.

In addition to the civil penalty, the stipulated court order prohibits Disney from operating on YouTube in ways that violate COPPA and requires the company to implement a compliance program to ensure future adherence to the law, according to the Justice Department.

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

The case was brought by the Justice Department on behalf of the Federal Trade Commission (FTC).