Disney Faces $10 Million Penalty for Violating Kids’ Online Privacy

Disney has agreed to pay a $10 million fine after federal authorities accused the company of violating children’s online privacy rules. The Department of Justice announced the settlement on Tuesday, December 30, according to Reuters.

The case centers on Disney’s YouTube videos that were not properly labeled as “Made for Kids.” This mistake allegedly allowed Disney to collect personal data from children under 13 for targeted advertising, which is against federal law.

The court order stops Disney Worldwide Services Inc. and Disney Entertainment Operations LLC from using YouTube in ways that break the Children’s Online Privacy Protection Act. The company must also set up a compliance program to prevent future violations.

“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.

The settlement closes a case that the Federal Trade Commission referred to the Justice Department in September. Under the law, online services aimed at kids must notify parents about what information is being collected and get verifiable consent before gathering any data.

This penalty is a reminder of how seriously regulators take children’s privacy online. Companies like Disney must be extra careful when targeting content for younger audiences.

What do you think about Disney’s fine and the rules for children’s online privacy? Share your thoughts in the comments.