Disney Subsidiary Under Fire: Endemol Shine Group Faces Multi-Million Dollar FTC Fine Over Alleged Children's Data Violations

A digital storm is brewing for a subsidiary of the Walt Disney Company, as reports indicate that Endemol Shine Group is on the verge of a substantial multi-million dollar fine from the Federal Trade Commission (FTC). The alleged transgression? Violations of the Children's Online Privacy Protection Act (COPPA), specifically concerning the unauthorized collection of personal information from children via its mobile applications.

The accusations center on popular apps, including those associated with the reality TV sensation "Big Brother." According to the FTC, these applications reportedly gathered children's names, email addresses, and persistent identifiers without first obtaining verifiable consent from their parents.

This alleged breach of privacy regulations has triggered a serious legal challenge for the entertainment giant's division.

This isn't a new development, however. The FTC initially flagged these potential violations back in 2018. The plot thickened in 2019 when Disney acquired Endemol Shine Group as part of its massive purchase of 21st Century Fox's television assets.

Consequently, the ongoing legal entanglement, which began before the acquisition, now falls under Disney's corporate umbrella.

Sources close to the matter suggest that Endemol Shine Group has been actively engaging in discussions with the FTC to try and resolve the dispute. However, the regulatory body appears poised to move forward, with a vote expected on whether to proceed with legal action.

Should the commissioners give their approval, the case would then be referred to the Justice Department, which would formally file a complaint in federal court.

The potential fine serves as a stark reminder of the rigorous scrutiny companies face regarding children's online privacy. COPPA mandates that operators of websites and online services directed at children under 13 must provide notice and obtain verifiable parental consent before collecting, using, or disclosing personal information from children.

Non-compliance can lead to hefty penalties, designed to deter companies from exploiting young users' data.

This high-profile case involving a Disney-owned entity underscores the critical importance of adhering to privacy regulations in the digital age, especially when it comes to the most vulnerable users.

The outcome of this FTC action will undoubtedly send a strong message across the tech and entertainment industries about the serious consequences of failing to protect children's online data.