Disney settlement overview:
- Who: The Walt Disney Co. has agreed to a settlement with the state of California.
- Why: The state alleged Disney violated the California Consumer Privacy Act (CCPA) by failing to fully honor consumers’ opt-out requests across devices and streaming services.
- Where: The enforcement action was brought by the California Department of Justice.
Disney will pay $2.75 million to resolve allegations it failed to properly honor California consumers’ privacy rights under the California Consumer Privacy Act, marking the largest CCPA settlement in state history, according to the California Attorney General’s Office.
Attorney General Rob Bonta announced the Disney settlement on Feb. 11, stating the investigation found Disney did not fully effectuate consumers’ requests to opt out of the sale or sharing of their personal information across all devices and streaming services linked to their Disney accounts.
Under the terms of the agreement, Disney must pay $2.75 million in civil penalties and implement opt-out mechanisms that fully stop the sale or sharing of consumers’ personal data when requested.
“Consumers shouldn’t have to go to infinity and beyond to assert their privacy rights,” Bonta said in a statement. “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.”
DOJ investigation found gaps in Disney’s opt-out tools
The enforcement action stems from a January 2024 investigative sweep of streaming services conducted by the California Department of Justice.
Investigators concluded that Disney’s opt-out processes contained significant gaps that allowed the company to continue selling or sharing data even after consumers attempted to opt out.
According to the press release, Disney’s opt-out toggles applied only to the specific streaming service or device being used at the time, which means data sharing could continue on other devices or services connected to the same account.
The investigation also found that when consumers used Disney’s webform to opt out, the company stopped sharing data only through its own advertising platforms but continued sharing information with certain third-party advertising technology companies embedded in its apps and websites. In addition, some connected TV streaming apps did not offer an in-app opt-out option, instead directing users to a webform.
For users who relied on the Global Privacy Control, a browser-based tool designed to signal a consumer’s opt-out preference, Disney allegedly limited the request to the specific device being used, even when the consumer was logged into their account.
The California Consumer Privacy Act grants consumers the right to know how businesses collect and share their personal information and to request that companies stop selling or sharing that data.
The Attorney General’s Office stated that opt-out rights must apply comprehensively and not be limited by device or platform.
The Disney settlement represents the seventh enforcement action under the CCPA. Attorney General Bonta’s office has previously reached settlements with Sephora, DoorDash and Sling TV.
In another Disney settlement, the company has agreed to pay $233 million to more than 51,000 Disneyland employees for allegedly violating a 2018 Anaheim minimum wage ordinance.
What do you think of the allegations against Disney? Let us know in the comments.
The CCPA Disney lawsuit is The People of the State of California v. Disney DTC LLC, et al., Case No. 24STCV04425, in the Superior Court of the State of California, County of Los Angeles.
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