The suit targets Disney and 3 other software companies Upsight, Unity and Kochava by stating that the companies are creating mobile apps for child-containing software to track, collect and then transmit personal information and online behavior habits of children, The Verge reported.
The prosecutor, a San Francisco woman, Amanda Rushing said she did not know that information about her son, L.L., was collected while playing Disney Princess Palace Pets's mobile games and the data was sold to third parties for targeted advertising. This demand mentions, what Disney did violate Child Online Privacy Protection Law (COPPA).
According to COPPA, companies that make applications for children under the age of 13 must obtain consent from parents before collecting personal information. In 2013, the US Federal Trade Commission (FTC) changes COPPA, includes geolocation markers and IP addresses as personal information. In addition, through such updates, third party advertisers must also comply with these rules.
Overall, this demand states that there are 42 Disney applications that violate COPPA. The prosecution wants the accused companies to be prohibited from tracking and sharing the data they get without parental consent, subject to a fine also charged to the court.
Meanwhile, Disney said, "Disney has a program that adheres strictly to COPPA, and we have strict rules regarding data collection for apps for children and families." This protest is based on a misconception of the COPPA principle and we will defend ourselves in court. "
This is not the first time Disney has been accused of violating COPPA. In 2011, the FTC awarded a US$ 3 million fine in the Playdom division as they collected and provided personal information from hundreds of thousands of children under the age of 13 without parental consent illegally.