settles

The Walt Disney Co. has settled claims that it violated child privacy laws, said the U.S. Department of Justice, with a federal court entering a stipulated order resolving the case, on Tuesday.

The company agreed to pay $10 million in the case in September.

The Justice Department had alleged that Disney Worldwide Services and Disney Entertainment Operations failed to accurately identify some YouTube video content as “Made for Kids,” enabling Disney and other parties to collect personal data from children under 13 years old. This information was then used for targeted advertising without parental notice or consent.

The Federal Trade Commission investigated the matter and referred the case to the Justice Department.

The alleged activities violated the Children’s Online Privacy Protection Act that requires websites and other online parties to safeguard the personal information it collects for children under 13 by notifying parents and obtaining their consent prior to acquiring such data.

“Supporting the well-being and safety of kids and families is at the heart of what we do,” a Disney spokesperson said in a statement in September. “Disney has a long tradition of embracing the highest standards of compliance with children’s privacy laws, and we remain committed to investing in the tools needed to continue being a leader in this space.”

In a statement Tuesday, Assistant Atty. Gen. Brett A. Shumate said, “the Justice Department is firmly devoted to ensuring parents have a say in how their children’s information is collected and used. The Department will take swift action to root out any unlawful infringement on parents’ rights to protect their children’s privacy.”

In addition to the $10-million penalty, the stipulated order prohibits Disney from operating on YouTube “in a manner that violates COPPA and requires Disney to create a program that will ensure it properly complies with COPPA on YouTube going forward,” said the Justice Department.

Disney could not immediately be reached for additional comment.

The FTC had accused the grocery delivery giant of charging fees to consumers after promising ‘free delivery’.

Instacart has agreed to pay $60m in refunds to settle allegations brought by the United States Federal Trade Commission (FTC) that the online grocery delivery platform deceived consumers about its membership programme and free delivery offers.

According to court documents filed in San Francisco on Thursday, Instacart’s offer of “free delivery” for first orders was illusory because shoppers were charged other fees, the FTC alleged.

The agency also accused Instacart of failing to adequately notify shoppers that their free trials of its Instacart+ subscription service would convert to paid memberships and of misleading consumers about its refund policy.

“The FTC is focused on monitoring online delivery services to ensure that competitors are transparently competing on price and delivery terms,” said Christopher Mufarrige, who leads the FTC’s consumer protection work.

An Instacart spokesperson said the company flatly denies any allegations of wrongdoing, but that the settlement allows the company to focus on shoppers and retailers.

“We provide straightforward marketing, transparent pricing and fees, clear terms, easy cancellation, and generous refund policies — all in full compliance with the law and exceeding industry norms,” the spokesperson said.

The shopping platform is currently under scrutiny after a recent study by nonprofit groups found that individual shoppers simultaneously received different prices for the same items at the same stores.

The FTC is investigating the company and has demanded information about Instacart’s Eversight pricing tool, the news agency Reuters reported on Wednesday.

Instacart has said that retailers are responsible for setting prices, and that pricing tests run through Eversight are random and not based on user data.

Lindsay Owens, the executive director of the Groundwork Collaborative, an economic think tank, criticised the grocery platform for using artificial intelligence (AI) to tweak its prices.

“At a time when families are being squeezed by the highest grocery costs in a generation, Instacart chose to run AI experiments that are quietly driving prices higher,” Owens said in written remarks provided to Al Jazeera.

She also called on the administration of US President Donald Trump to take action to prevent such price manipulation from continuing into the future.

“While the FTC’s investigation is welcome news, it must be followed with meaningful action that ends these exploitative pricing schemes and protects consumers,” Owens said. “Instacart must face consequences for their algorithmic price gouging, not just a slap on the wrist.”

On Wall Street, Instacart’s stock is taking a hit on the heels of the settlement, finishing out the day down 1.5 percent.