Walt Disney Co. settled claims that it violated children's privacy laws, the U.S. Justice Department said, and on Tuesday a federal court issued a stipulated resolution of the case.
The company agreed to pay $10 million in the case. in September.
The Justice Department said Disney Worldwide Services and Disney Entertainment Operations failed to accurately identify certain YouTube video content as “Made for Children,” which allowed Disney and others to collect personal information from children under 13. This information was then used to target advertisements without parental notification or consent.
The Federal Trade Commission investigated the matter and referred the matter to the Department of Justice.
The alleged actions violated the Children's Online Privacy Protection Act, which requires websites and other online parties to protect personal information they collect from children under 13 by notifying parents and obtaining their consent before collecting such data.
“Supporting the well-being and safety of children and families is at the core of what we do,” a Disney spokesperson said in a statement in September. “Disney has a long tradition of maintaining the highest standards of compliance with children's privacy laws, and we remain committed to investing in the tools necessary to continue to be a leader in this area.”
In a statement Tuesday, Assistant Atty. General Brett A. Shumate said, “The Department of Justice is firmly committed to ensuring that parents have a say in how their children's information is collected and used. The Department will take swift action to root out any unlawful attack on parents' rights to protect the privacy of their children.”
In addition to the $10 million fine, the proposed order prohibits Disney from operating YouTube “in a manner that violates COPPA and requires Disney to establish a program that will ensure proper compliance with COPPA at YouTube in the future,” the Justice Department said.
Disney could not be reached for further comment.
