- California AG Rob Bonta reached a settlement with Disney DTC, LLC and ABC Enterprises, Inc. (collectively, “Disney”) for allegedly violating the California Consumer Privacy Act by mishandling consumer opt-outs.
- According to the complaint, the companies offered opt-out tools that were service- and device-specific, allegedly requiring consumers to take multiple steps across platforms to stop the sale or sharing of personal information for cross-context behavioral advertising.
- The AG’s office further alleged that the companies failed to effectively process opt-out preference signals in a consumer-friendly way across their streaming services—including Disney+, Hulu, and ESPN+—and used a choice architecture that could confuse or deceive users about their privacy settings.
- Under the terms of the settlement, Disney will pay a $2,750,000 civil penalty and must implement a monitoring program to ensure effective opt-out methods across all platforms, and provide annual compliance reports for three years with periodic progress updates.