A recurring difficulty in the Minimal Model Program is that while log terminal singularities are quite well behaved (for instance, they are rational), log canonical singularities are much more complicated; they need not even be Cohen-Macaulay. The aim of this paper is to prove that log canonical singularities are Du Bois. The concept of Du Bois singularities, introduced by Steenbrink, is a weakening of rationality. We also prove flatness of the cohomology sheaves of the relative dualizing complex of a projective family with Du Bois fibers. This implies that each connected component of the moduli space of stable log varieties parametrizes either only Cohen-Macaulay or only non-Cohen-Macaulay objects.