Disney Hit with $10 Million Fine Over Child Privacy Violations

Disney has agreed to pay a $10 million fine after federal authorities said the company broke rules meant to protect children’s privacy online, Reuters reports.

The Department of Justice announced on Tuesday, December 30, that The Walt Disney Company will pay the civil penalty to settle claims it violated child privacy laws.

The complaint said Disney did not correctly mark some YouTube videos as “Made for Kids,” which may have let the company gather personal data from children under 13 for targeted ads.

Under the court order, Disney Worldwide Services Inc. and Disney Entertainment Operations LLC are banned from operating on YouTube in ways that break the Children’s Online Privacy Protection Act. The company must also set up a program to make sure it follows the rules in the future.

According to Reuters, the law requires websites, apps, and online services aimed at kids under 13 to tell parents what information is being collected and to get parental consent before gathering any data.

“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 in a statement.

This settlement comes after the Federal Trade Commission referred the case to the Justice Department, finalizing an agreement reached in September.

This is a major reminder for big companies that handling children’s data comes with serious responsibility. Disney will likely tighten its online practices after this. What do you think about companies collecting data from kids online? Share your thoughts in the comments.