The California’s Attorney Journal announced a $2.75 million settlement with The Walt Disney Company on Wednesday, to resolve allegations that Disney violated the California Consumer Privacy Act (CCPA). Under this settlement, Disney will make the civil payout over its past alleged data indiscretions and overly complicated opt-out process.
“Defendants shall stop SELLING and SHARING the CONSUMER’S PERSONAL INFORMATION and shall stop conducting CROSS-CONTEXT BEHAVIORAL ADVERTISING for that CONSUMER,” says the caps-heavy settlement agreement signed off by LA Superior Court Judge Daniel Crawley.
Attorney General Rob Bonta emphasized that opt-out rights under California’s privacy law should be simple and effective. “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 … 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.”
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The state DOJ’s investigation found that Disney’s existing opt-out methods were incomplete: toggle switches often applied only to individual services or devices, webforms limited opt-out to Disney’s own advertising channels while still selling data through embedded third-party ad tech, and support for the Global Privacy Control (GPC) was restricted by device rather than account-wide.
This enforcement action is the largest CCPA settlement in California history. It also marks at least the seventh privacy-law enforcement action by the Attorney General’s Office. There have previously been settlements under CCPA with companies like Sephora, DoorDash, Jam City, Sling TV, Healthline.com, and Tilting Point Media. The DOJ continues to conduct investigative sweeps targeting privacy compliance across industries.
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“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,” Disney told Deadline in a statement. “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.”
Disney recently named theme parks head Josh D’Amaro as its new CEO, following years of uncertainty over succession. D’Amaro will take on the role from longtime CEO Bob Iger at the company’s annual investor meeting on March 18.