The Justice Department announced today that a federal court has entered a stipulated order resolving a case against Disney Worldwide Services Inc. and Disney Entertainment Operations LLC, (collectively, Disney). Under the order, Disney will pay $10 million in civil penalties as part of a settlement to resolve allegations that Disney violated the Children’s Online Privacy Protection Act and its implementing regulations (COPPA) in connection with Disney’s popular YouTube video content.
COPPA prohibits website operators from knowingly collecting, using, or disclosing personal information from children under the age of 13 (hereinafter, children), unless they provide notice to and obtain consent from those children’s parents. In a complaint filed in the U.S. District Court for the Central District of California, the government alleged that Disney improperly failed to designate YouTube video content as directed toward children. As a result, Disney, and others acting on Disney’s behalf, targeted advertising toward children on YouTube and unlawfully collected children’s information without parental notice and consent, in violation of COPPA. Disney’s YouTube video content is extremely popular, with billions of views in the United States alone.
“The Justice Department is firmly devoted to ensuring parents have a say in how their children’s information is collected and used,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department will take swift action to root out any unlawful infringement on parents’ rights to protect their children’s privacy.”
In addition to imposing a $10 million civil penalty on Disney, the stipulated order bars Disney from operating on YouTube in a manner that violates COPPA and requires Disney to create a program that will ensure it properly complies with COPPA on YouTube going forward.
The United States is represented in this action by Assistant Director Zachary A. Dietert, and Trial Attorneys Zachary L. Cowan and Francisco L. Unger, from the Enforcement Section of the Civil Division’s Enforcement and Affirmative Litigation Branch. Jacqueline Ford represents the FTC.