What's Happening?
The California Department of Justice (DOJ) has reached a $2.75 million settlement with The Walt Disney Company over allegations of violating the California Consumer Privacy Act (CCPA). The settlement, announced on February 11, 2026, resolves claims that Disney failed to honor consumer requests to opt-out of the sale or sharing of their personal information across all devices and services linked to a single Disney account. The DOJ's investigation revealed that Disney's opt-out mechanisms were inadequate, often applying only to individual services or devices, and that the company continued to sell data through third-party ad technologies despite consumer requests. As part of the settlement, Disney is required to pay civil penalties and implement
comprehensive opt-out mechanisms to ensure consumer data is not sold or shared when requested.
Why It's Important?
This settlement is significant as it represents the largest CCPA enforcement action in California's history, highlighting the state's commitment to enforcing consumer privacy rights. The case underscores the importance of robust privacy practices for companies operating in California, where consumer privacy laws are among the strictest in the nation. The outcome serves as a warning to other companies about the potential financial and reputational risks of non-compliance with privacy regulations. For consumers, the settlement reinforces their rights to control personal data and the expectation that companies will respect opt-out requests. The enforcement action also reflects broader trends in privacy regulation, as states and countries increasingly prioritize consumer data protection.
What's Next?
Following the settlement, Disney is expected to overhaul its data privacy practices to comply with the CCPA. This includes implementing more effective opt-out mechanisms that apply across all devices and services linked to a consumer's account. The California DOJ will likely continue its investigative efforts to ensure compliance with privacy laws across various industries. Other companies may also review and strengthen their privacy policies to avoid similar legal challenges. The settlement could prompt further legislative action to enhance consumer privacy protections, potentially influencing national privacy standards.
