Disney-Owned Company Fined $3 Million for Children's Privacy Violations

An online social gaming company owned by the Walt Disney Co. and one of its top executives have agreed to pay a $3 million penalty to settle Federal Trade Commission charges they illegally amassed and divulged personal information from hundreds of thousands of children without their parents' consent.

The settlement marks the largest civil penalty to date for a violation of the FTC's Children's Online Privacy Protection Rule, which requires website operators to notify parents and obtain their consent before collecting, using or disclosing children's personal information.