Disney Reaches $2.75 Million Settlement with California Over CCPA Violations

Overview of the Settlement

In a significant development, Disney has agreed to a $2.75 million settlement with the state of California, addressing allegations of violations related to the California Consumer Privacy Act (CCPA). This settlement aims to ensure that Disney enhances transparency regarding consumer data handling and ensures consumer rights are respected.

Findings of the Investigation

California Attorney General Rob Bonta spearheaded the investigation, which revealed several shortcomings in Disney’s consumer data policies. Key insights from the investigation include:

• Disney was found to have inadequately honored consumer requests to opt out of the sale or sharing of personal data linked to their accounts across various devices and streaming services.
• The investigation began in January 2024 as part of a larger review of streaming services for potential CCPA breaches.
• Specific gaps were noted in Disney’s opt-out processes, which inadvertently allowed for continued data selling or sharing.

Issues Identified

The investigation detailed several critical flaws in Disney’s data-sharing opt-out mechanisms:

• Opt-out toggles on Disney’s platforms often applied only to individual devices or services, rather than extending to the entire user account.
• Disney’s webform for opting out curtailed data sharing on its advertising platform but permitted ongoing data sharing with specific third-party advertising technology companies.
• Certain connected TV applications were lacking in-app opt-out functionalities and redirected users to a webform that did not adequately stop data sharing.
• Global Privacy Control (GPC) signals were limited to single devices, failing to address users’ entire accounts even when logged in.

Implications of the Settlement

Under the terms of this recent settlement, Disney is required to implement effective opt-out mechanisms that will fully halt the sale or sharing of personal information. This move is pivotal for safeguarding consumer privacy and aligns with the principles outlined in the CCPA, which grants California consumers the right to be informed about how their personal data is collected and shared, as well as the ability to request its cessation (source).

Continued Enforcement and Compliance Monitoring

This agreement marks the seventh enforcement action taken under Bonta’s leadership, with past settlements involving brands like Sephora, DoorDash, and Sling TV. The Attorney General’s office remains vigilant, continuously conducting investigative sweeps to ensure compliance with California’s evolving privacy regulations.

Importance of Consumer Data Privacy

Regardless of opinions about Disney’s products, transparency in how companies handle personal data is crucial. The settlement underscores a crucial aspect of consumer rights and corporate responsibility, emphasizing that consumers should have control over their personal information.

Moreover, in September 2025, Disney entered another settlement with the Federal Trade Commission regarding incorrectly labeled “Made for Kids” content, which allowed for data collection without parental consent. Following that incident, Disney implemented new procedures to abide by the Children’s Online Privacy Protection Act (COPPA) guidelines (more on COPPA).

Conclusion

The settlement between Disney and California signals a significant step toward enforcing consumer data protection laws and promoting ethical practices among major corporations. Such measures are essential for fostering consumer trust and ensuring compliance with privacy regulations. As the landscape of data privacy continues to evolve, it is imperative for companies to prioritize transparency and consumer rights in the digital age.

For more information on California privacy regulations, check out the California Attorney General’s website.