The Walt Disney Company has agreed to pay $10 million to settle Federal Trade Commission allegations that the company enabled the collection of children’s personal data through certain Disney content distributed on YouTube.
The FTC’s complaint centered on allegations that Disney failed to properly designate some uploaded YouTube videos as “Made for Kids,” which is required under the Children’s Online Privacy Protection Act (COPPA) when content is directed to children.
It was likely about targeted advertising.
When videos are not labeled correctly, the platform may allow features and advertising tools that are not permitted for kids’ content, including behavioral ad targeting, the FTC alleged.
Children under 13 are not allowed to be tracked or shown targeted ads without parental consent.
A Disney spokesperson emphasized that the agreement does not involve Disney-owned and operated digital platforms, and instead is limited to certain Disney content distributed on YouTube’s platform.
FTC Allegations. What was the exact issue?
According to the FTC’s allegations, the problem stemmed from content uploaded to YouTube that was not correctly labeled for children. The agency said that mislabeling could enable the collection of children’s personal information and its use for targeted advertising—something COPPA is designed to prevent.
The complaint also referenced Disney content tied to major family titles of Disney-owned films such as “Frozen,” “Toy Story,” and “Coco,” along with Disney music content.
Why the “Made for Kids” designation matters on YouTube
YouTube requires creators to mark videos as “Made for Kids” when the primary audience is children or when the content shows an intent to target children. The platform also warns that failing to do so can carry legal consequences under COPPA and other laws.
The settlement follows a major precedent from 2019, when Google and YouTube agreed to pay $170 million to resolve COPPA-related allegations.
Disney won’t admit to wrongdoing
With the settlement, Disney avoids prolonged litigation while committing to new compliance steps aimed at preventing future disputes over how its children’s programming is labeled on YouTube.
Disney did not admit wrongdoing as part of the settlement language described.
Disney is not the only one in trouble
Microsoft also paid $20 million in 2023 for alleged violations with sign-ups for its Xbox video game platform.
The FTC is also considering steps against TikTok for alleged COPPA violations as well.
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