Disney Settles California Consumer Privacy Act Violations for $2.75 Million

Walt Disney Co. has agreed to pay $2.75 million to resolve claims that it violated the California Consumer Privacy Act by not fully honoring consumers’ requests to opt out of data sharing on its streaming services. The state attorney general’s office found that Disney was only processing opt-out requests on the same device or streaming service they originated from, failing to address all avenues of data sharing.

As part of the settlement, Disney will implement a more user-friendly process for users to opt out of data sharing with as few steps as possible. Attorney General Rob Bonta emphasized the importance of making privacy rights accessible to consumers without unnecessary complexity. Disney, on the other hand, highlighted its commitment to investing in responsible data practices across its streaming services, striving to maintain a high standard of privacy protection for its users.

The investigation leading to this settlement began in 2024 and focused on potential violations of the California Consumer Privacy Act in the realm of streaming devices and apps. This law requires businesses to offer users the option to opt out of their personal data being shared for targeted advertising purposes. The $2.75 million payment from Disney is the largest settlement to date under this privacy act, setting a significant precedent for future cases.

Overall, this settlement underscores the ongoing efforts of both regulators and companies to maintain a balance between technological advancement and user privacy, ensuring that data practices evolve responsibly to meet the needs and expectations of consumers.