Disney, Viacom to settle child privacy class-action lawsuit

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The advertising networks use that data to target children. Both the gaming app developers and their ad partners share the revenue generated from the alleged breach of privacy.

“Current privacy expectations are developing, to say the least, with respect to a key issue raised in these cases — whether the data subject owns and controls his or her personal information, and whether a commercial entity that secretly harvests it commits a highly offensive or egregious act,” Judge Donato said last year when he ruled the case should go forward.

The plaintiffs issued a statement calling the settlement an “excellent result.” They feel certain that the agreement to restrict the collection and use of children’s data will affect “fundamental principles” reinforcing COPPA and further protect children from being exploited online for marketing purposes. 

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The parents are hopeful that the restrictions on the apps named in the suit will set a precedent. And can be used against the developers of thousands of other apps and games that harvest private data as a marketing tool.