Disney to pay $10 million over alleged breaches of child privacy laws

Entertainment giant Disney has agreed to pay $10 million to settle a case over the collection of children's data, the US Justice Department said on Tuesday.

The department said a federal court had approved a stipulated order resolving a case against Disney Worldwide Services and Disney Entertainment Operations.

Under the settlement, Disney will pay $10 million in civil penalties to resolve allegations from the Federal Trade Commission that the company violated the Children's Online Privacy Protection Act (COPPA) in connection with its YouTube video content.

COPPA prohibits online platforms from collecting, using, or disclosing personal information from children under the age of 13 without parental notice and consent.

The government's complaint alleged that Disney failed to properly designate its YouTube content as directed toward children, which led to targeted advertising and the unlawful collection of children's data.

Assistant Attorney General Brett Shumate said the department was "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."

Disney's videos are among the most popular on YouTube, with billions of views in the US alone.

Beyond the financial penalty, the order bars Disney from operating on YouTube in violation of COPPA and requires the company to establish a compliance programme to ensure future adherence to children's privacy protections.