Disney to pay $10M to resolve alleged violations of child privacy

Disney to pay $10M to resolve alleged violations of child privacy

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

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

Disney has been barred from working on YouTube in a way that violates the Children’s Online Privacy Protection Act, the Department of Justice said. REUTERS

The order requires Disney to create a program that will guarantee it correctly complies with the privacy legislation on YouTube in the future, it added.

The legislation requires web sites, apps and other on-line providers geared toward kids under 13 to notify dad and mom about what private info they gather, and acquire verifiable parental consent before gathering such info

“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 press release.

Disney shall be required to create a program that will guarantee it correctly complies with the privacy legislation on YouTube in the future, the DOJ said. AP

Disney couldn’t instantly be reached for a remark.

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

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