Disney to pay $10 million to settle alleged child privacy law violations

The Walt Disney Company has agreed to pay a $10 million civil penalty to resolve allegations that it violated child privacy laws in several videos uploaded to YouTube, according to the U.S. Department of Justice.

The DOJ complaint alleged that Disney failed to properly label certain YouTube videos as "Made for Kids." This failure allowed Disney and its representatives to collect personal data from children under the age of 13 and use that information for targeted advertising purposes.

Under current law (COPPA), websites and apps directed at children under 13 are required to notify parents about the personal information they collect and obtain verifiable parental consent before gathering such data.

As part of the settlement, Disney is not only required to pay the fine but must also establish a comprehensive program to ensure future compliance with child privacy protection laws on YouTube.