Walt Disney has agreed to pay a $10 million civil penalty to resolve allegations that it violated federal child privacy laws through certain videos uploaded to YouTube, according to the U.S. Department of Justice.
In a complaint, the DOJ alleged that Disney Worldwide Services and Disney Entertainment Operations failed to properly designate some YouTube videos as “Made for Kids.” As a result, Disney and entities acting on its behalf were able to collect personal data from children under the age of 13 and use that information for targeted advertising.
The settlement, finalized through a court order, follows an agreement first announced in September. Under the terms, Disney must also establish a compliance program to ensure adherence to the Children’s Online Privacy Protection Rule for future content posted on YouTube.
Federal law requires websites, applications, and online services directed at children under 13 to inform parents about what personal information is collected and to obtain verifiable parental consent before gathering such data.
“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 Shumate of the Justice Department’s Civil Division in a statement.
Disney did not immediately respond to a request for comment.
The matter was referred to the Justice Department by the Federal Trade Commission.
