The U.S. Justice Department announced that a federal court has approved a stipulated order resolving a case against Disney Worldwide Services Inc. and Disney Entertainment Operations LLC. 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 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. Disney's videos are among the most popular on YouTube, with billions of views in the U.S. 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 program to ensure future adherence to children's privacy protections.
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