Disney agrees to pay $10 million to settle alleged violations of child privacy laws

The Walt Disney Company has agreed to pay a $10 million civil penalty as part of a settlement to resolve allegations it violated child privacy laws, the Justice Department said on Tuesday.

A federal court order in the case involving Disney Worldwide Services Inc and Disney Entertainment Operations LLC also bars Disney from operating on YouTube in a manner that violates the Children’s Online Privacy Protection Act, the department said.

The order requires Disney to create a program that will ensure it properly complies with the privacy law on YouTube in the future, it added.

The law requires websites, apps, and other online services aimed at children under 13 to notify parents about what personal information they collect, and obtain verifiable parental consent before collecting such information

“The Justice Department is firmly devoted to ensuring parents have a say in how their children’s information is collected and used,” Assistant Attorney General Brett Shumate of the Justice Department’s Civil Division said in a statement.

Disney could not immediately be reached for a comment.

The order finalizes a settlement reached in September in a case referred to the DOJ by the Federal Trade Commission.

—Ryan Patrick Jones, Doina Chiacu, and Dawn Chmielewski, Reuters