California DOJ Slaps Record Fine on Walt Disney Company
The California Department of Justice (DOJ) has reached a significant settlement with The Walt Disney Company, imposing a record fine for consumer privacy violations. This settlement, totaling $2.75 million, was announced on February 11 and marks the largest California Consumer Privacy Act (CCPA) settlement to date.
Background of the Settlement
The settlement emerged from an investigation into Disney’s data privacy practices, particularly regarding its streaming services. The DOJ alleged that the company did not honor consumer requests to opt out of the sale or sharing of personal information linked to Disney accounts.
Violation Details
- The DOJ found that Disney’s opt-out mechanisms were inadequate.
- Options for opting out often applied only to specific services or devices.
- Webforms limited the opt-out to Disney’s advertising channels without addressing third-party ad tech.
- Support for the Global Privacy Control (GPC) varied by device rather than being account-wide.
California Attorney General Rob Bonta commented on the significance of the settlement, highlighting the lack of simplicity in asserting consumer privacy rights. He stated, “Consumers shouldn’t have to go to infinity and beyond to assert their privacy rights.”
Impact and Future Enforcement
This enforcement action represents the seventh privacy-related case led by the Attorney General’s Office. It emphasizes California’s ongoing commitment to enforcing robust privacy laws across various industries.
Previous Settlements
Prior settlements under the CCPA include agreements with notable companies, such as:
- Sephora
- DoorDash
- Jam City
- Sling TV
- Healthline.com
- Tilting Point Media
The investigation into Disney’s practices illustrates a wider effort by the DOJ to ensure compliance with privacy regulations in California. As of now, Disney has not released an official comment regarding the settlement.
