The Walt Disney Company has agreed to pay $10 million to settle allegations that it violated children's online privacy laws, specifically the Children's Online Privacy Protection Act (COPPA). The settlement follows a complaint filed with the Federal Trade Commission (FTC) in 2019, in which the agency alleged that Disney collected personal information from children without proper consent.
Background on the Allegations
The complaint filed by the FTC alleged that Disney collected personal information from children under the age of 13 through its websites, apps, and other online services. This information included names, email addresses, and other contact details.
The FTC also alleged that Disney failed to provide clear and conspicuous disclosures to parents and children about the collection and use of personal information.
Terms of the Settlement
The terms of the settlement require Disney to pay a total of $10 million, which will be used to compensate victims of the alleged COPPA violations. The company is also required to implement new policies and procedures to ensure compliance with COPPA going forward.
Additionally, Disney is required to conduct annual audits to ensure that it is in compliance with COPPA and to submit reports to the FTC for the next 20 years.
Impact of the Settlement
The settlement is a significant development in the ongoing efforts to protect children's online privacy. It serves as a reminder to companies that they have a responsibility to protect the personal information of children under the age of 13.
The FTC has been actively enforcing COPPA in recent years, and this settlement demonstrates the agency's commitment to holding companies accountable for their actions.
The Walt Disney Company has a long history of producing content that appeals to children, and this settlement is a significant development in the ongoing efforts to protect children's online privacy.
The company has agreed to pay $10 million to settle allegations that it violated children's online privacy laws, and it will implement new policies and procedures to ensure compliance with COPPA going forward.