Disney agrees to pay $12.8 million to resolve alleged child privacy law violations, Justice Dept says

WASHINGTON - Walt Disney has agreed to pay a US$10 million (S$12.8 million) civil penalty as part of a settlement to resolve allegations it violated child privacy laws in some videos uploaded to YouTube, the US Department of Justice said on Dec 30.

A DOJ complaint alleged that Disney Worldwide Services and Disney Entertainment Operations failed to properly label some videos it uploaded to YouTube as “Made for Kids”.

That allowed Disney and others acting on its behalf to collect personal data from children younger than 13-year-old, and use that information for targeted advertising.

The order, which finalises a settlement announced in September, requires Disney to create a program to ensure it properly complies with the Children’s Online Privacy Protection Rule 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 case was referred to the DOJ by the Federal Trade Commission. REUTERS