The Walt Disney Company has agreed to pay a civil penalty of $10 million to settle allegations of violating child privacy laws, as announced by the Justice Department on Tuesday. This settlement involves Disney Worldwide Services Inc. and Disney Entertainment Operations LLC, which will face restrictions on their operations related to YouTube.
Under a federal court order, Disney is prohibited from engaging in practices on YouTube that contravene the Children’s Online Privacy Protection Act (COPPA). This law mandates that online services targeting children under the age of 13 must inform parents about the personal information they collect and obtain verifiable consent from them prior to any data collection.
As part of the settlement, the company is also required to implement a compliance program aimed at ensuring adherence to COPPA in the future. “The Justice Department is firmly devoted to ensuring parents have a say in how their children’s information is collected and used,” stated Assistant Attorney General Brett Shumate of the Civil Division.
The agreement concludes a case that was initially referred to the Justice Department by the Federal Trade Commission last September. Disney did not immediately respond to requests for comment regarding the settlement.
Why this story matters:
- Ensures stronger protections for children’s online privacy and promotes accountability among major corporations.
Key takeaway:
- Disney must create a compliance program to adhere to child privacy laws, particularly concerning its operations on YouTube.
Opposing viewpoint:
- Critics might argue that the settlement does not go far enough in deterring violations of child privacy laws and protecting young users online.
