Disney will pay $2.75 million to settle charges that it violated California's privacy law by failing to fully honor streaming video users' requests to opt out of the sale or sharing
of their data.
The settlement, approved
Wednesday by Los Angeles Superior Court Judge Daniel Crowley, also requires Disney to implement a "consumer-friendly, easy to execute opt-out process," and to stop "conducting cross-context behavioral
advertising" after consumers opt out of the selling or sharing of their data.
A Disney spokesperson stated Thursday that the company "continues to invest significant resources
to set the standard for responsible and transparent data practices across our streaming services."
The settlement resolves a complaint alleging that Disney failed to apply opt outs across consumers' devices.
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"California’s comprehensive data privacy law ... created a whole new world of consumer data protections," California Attorney General Rob Bonta alleges in the complaint, which
references theme songs from Disney movies including “Aladdin” and “Beauty and the Beast.”
"But in a tale as old as time, Disney placed its profits over
these critical consumer privacy rights," the complaint states.
Bonta's office alleges that Disney "diligently linked consumer devices and data for purposes of targeting
consumers with ads," but "failed to link those same devices and data when it came to complying with consumers’ exercise of their statutory right to opt out of targeted advertising."
The Disney settlement comes around two years after Bonta launched a privacy crackdown on companies offering streaming apps or devices. As part
of that initiative, he sent letters to streaming companies that allegedly didn't give residents an easy mechanism to opt out of the sale or sharing of their data.
In November,
Dish's Sling TV agreed to settle with Bonta over claims that it failed to offer consumers a simple way to opt out of the use of their data for advertising, and failed to provide "sufficient privacy
protections" for children.