The Walt Disney Co. has settled claims that it violated child privacy laws, said the U.S. Department of Justice, with a federal court entering a stipulated order resolving the case, on Tuesday.
The company agreed to pay $10 million in the case in September.
The Justice Department had alleged that Disney Worldwide Services and Disney Entertainment Operations failed to accurately identify some YouTube video content as “Made for Kids,” enabling Disney and other parties to collect personal data from children under 13 years old. This information was then used for targeted advertising without parental notice or consent.
The Federal Trade Commission investigated the matter and referred the case to the Justice Department.
The alleged activities violated the Children’s Online Privacy Protection Act that requires websites and other online parties to safeguard the personal information it collects for children under 13 by notifying parents and obtaining their consent prior to acquiring such data.
“Supporting the well-being and safety of kids and families is at the heart of what we do,” a Disney spokesperson said in a statement in September. “Disney has a long tradition of embracing the highest standards of compliance with children’s privacy laws, and we remain committed to investing in the tools needed to continue being a leader in this space.”
In a statement Tuesday, Assistant Atty. Gen. Brett A. Shumate said, “the Justice Department is firmly devoted to ensuring 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 infringement on parents’ rights to protect their children’s privacy.”
In addition to the $10-million penalty, the stipulated order prohibits Disney from operating on YouTube “in a manner that violates COPPA and requires Disney to create a program that will ensure it properly complies with COPPA on YouTube going forward,” said the Justice Department.
Disney could not immediately be reached for additional comment.
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