Accused of violating children's privacy laws, Walt Disney Company (DIS.US) has agreed to pay $10 million to settle with the US Department of Justice.

The Department of Justice in the United States announced on Tuesday that Walt Disney Company has agreed to pay a civil fine of $10 million as part of a settlement agreement to resolve allegations of violating children's privacy laws in some videos uploaded to YouTube. A lawsuit by the Department of Justice stated that Disney Worldwide Services and Disney Entertainment Operations failed to properly label some videos uploaded to YouTube as "child-directed." This allowed Walt Disney Company and its agents to collect personal data from children under 13 and use this information for targeted advertising. The Department of Justice added that this order finalizes the settlement agreement announced in September and requires Walt Disney Company to establish a program to ensure strict compliance with the Children's Online Privacy Protection Act (COPPA) on YouTube in the future. This law requires websites, applications, and other online services targeting children under 13 to inform parents of what personal information is collected and obtain verifiable parental consent before collecting such information. Brett Shumate, Deputy Assistant Attorney General for Civil Matters at the Department of Justice, said in a statement: "The Department of Justice is committed to ensuring that parents have a say in the collection and use of information about their children."