Disney Agrees to Pay $2.75 Million For California Privacy Law Violations
Just months after Disney agreed to a $10 million settlement in the Federal Trade Commission’s children’s privacy lawsuit, the Mouse House has put to rest another privacy case.
Disney has agreed to a $2.75 million settlement with the state of California over accusations that it broke state privacy laws by making it difficult for consumers to opt out of having their data shared.
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The settlement comes after California Attorney General Rob Bonta alleged that Disney’s “opt-out” process made it impossible for users to protect their data across platforms associated with their Disney account.
California’s Accusations
The investigation into Disney was part of the California DOJ’s probe into streaming services for violations of the California Consumer Privacy Act (CCPA).
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Eventually, the state determined that if a user “opted out of sharing their data via an opt-out toggle in Disney’s websites and apps, Disney only applied the request to the specific streaming service the user was watching, and often only to the specific device the consumer was using.”
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“This meant that in most instances, using the toggle would not stop selling or sharing from other devices or services connected to the consumer’s account,” a California DOJ press release explained.
The Settlement
In addition to paying the $2.75 million fine, Disney must now implement opt-out methods that fully prevent the sale or sharing of consumers’ personal information.
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As part of the settlement, the company is not accepting liability or offering any admission of guilt.
“[As an] industry leader in privacy protection, Disney continues to invest significant resources to set the standard for responsible and transparent data practices across our streaming services,” a spokesperson told The Record.
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The $2.75 million fine is the largest ever paid for a CCPA violation.
