Animation giant Walt Disney has agreed to pay a $2.75 million fine and overhaul its privacy practices to settle violation allegations of the California Consumer Privacy Act (CCPA). The Disney CCPA settlement marks the largest settlement in the Act's enforcement history.

For a global audience watching the evolution of data privacy enforcement, the Disney CCPA settlement is more than a state-level regulatory action as it signals a tougher stance on how companies handle consumer opt-out rights in an increasingly connected digital ecosystem.

Announced by California Attorney General Rob Bonta, the settlement resolves claims that Disney failed to fully honor consumers’ requests to opt out of...