The U.S. Justice Department announced Tuesday that a federal court has approved a stipulated order resolving allegations against Disney Worldwide Services Inc. and Disney Entertainment Operations LLC for alleged violations of federal children’s privacy laws. The resolution stems from claims that Disney failed to comply with requirements governing the online collection of personal information from children.
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According to the government, Disney violated the Children’s Online Privacy Protection Act (COPPA) and its implementing regulations. COPPA restricts operators of websites and online services from knowingly collecting, using, or disclosing personal information from children under 13 without first providing notice to parents and obtaining verifiable parental consent.
The complaint, filed in the U.S. District Court for the Central District of California, alleged that Disney did not properly designate certain YouTube video content as directed to children. As a result, advertisements were allegedly targeted to child viewers, triggering data collection practices subject to COPPA’s protections.
Federal officials contended that Disney and entities acting on its behalf collected personal information from children without the required parental notice or consent. The Justice Department emphasized the scale of the issue by noting that Disney’s YouTube content has amassed billions of views in the United States, including videos featuring Disney characters, animations, and other family-oriented programming that appeal to young audiences.
Under the terms of the court-approved order, Disney agreed to pay a $10 million civil penalty to the United States, resolving the matter without admitting liability. The order also includes injunctive relief barring Disney from operating on YouTube in ways that violate COPPA and requiring the company to establish a comprehensive compliance program, including policies, training, audits, and procedures for properly identifying child-directed content.
Assistant Attorney General Brett A. Shumate stated that the Justice Department is committed to ensuring parents retain control over how their children’s information is collected and used. While the settlement concludes the enforcement action—part of a broader history of COPPA enforcement led by the Federal Trade Commission—it includes no findings beyond the complaint’s allegations, and Disney has not issued a public statement addressing the resolution.[/read]