Disney, California agree to $2.75M settlement over privacy issues

Wooden judge gavel and us money dollar bills.
Settlement FILE PHOTO: The Walt Disney Company has reached a settlement with California over privacy issues. (RomanR - stock.adobe.com)

The Walt Disney Company and the state of California have come to a legal settlement over privacy concerns.

The House of Mouse will pay the Golden State a $2.75 million civil settlement over past alleged data privacy issues and for allegedly making the opt-out process overly complicated, Deadline reported.

Bloomblerg Law said it was the largest settlement under the state’s privacy law.

“Defendants shall stop SELLING and SHARING the CONSUMER’S PERSONAL INFORMATION and shall stop conducting CROSS-CONTEXT BEHAVIORAL ADVERTISING for that CONSUMER,” the agreement approved by the Los Angeles Superior Court said.

The agreement also states that Disney must have “clear and conspicuous” notice to users that the company uses “cross context behavioral advertising” using personal information from third parties, and a way to opt out of the information being sold or shared.

Disney released a statement to The Wrap about the case.

“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,” the company said. “As technology and media continue to evolve, protecting the privacy and preserving the experience of Californians and fans everywhere remains a longstanding priority for Disney.”

State Attorney General Rob Bonta said in a news release, “Consumers shouldn’t have to go to infinity and beyond to assert their privacy rights. Today, my office secured the largest settlement to date under the CCPA over Disney’s failure to stop selling and sharing the data of consumers that explicitly asked it to.”

Bonta said in a news release, “California’s nation-leading privacy law is clear: A consumer’s opt-out right applies wherever and however a business sells data — businesses can’t force people to go device-by-device or service-by-service. In California, asking a business to stop selling your data should not be complicated or cumbersome. My office is committed to the continued enforcement of this critical privacy law.”

Disney was not alone in reaching an agreement with the state over violations of the California Consumer Privacy Act. Sling TV, Sephora, DoorDash and others have also agreed to settlements, according to the attorney general.

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