Disney Settles FTC Allegations, Pays $10 Million for Child Data Collection on YouTube
Disney Settles FTC Allegations, Pays $10 Million for Child Data Collection on YouTube
Disney has agreed to pay a $10 million civil penalty to resolve allegations from the Federal Trade Commission (FTC) that it allowed the collection of children’s data on videos posted to YouTube. The settlement addresses claims that Disney failed to properly designate child-directed content as ‘Made for Kids,’ a crucial step to comply with federal laws protecting children’s online privacy.
The FTC stated that Disney will implement new practices to adhere to the Children’s Online Privacy Protection Act (COPPA), which mandates parental consent for data collection from users under 13. FTC Chairman Andrew Ferguson emphasized the importance of the order in penalizing Disney’s breach of parental trust and promoting future online child protection through age assurance technology.
Disney, in response, affirmed its commitment to child privacy laws, clarifying that the settlement pertains specifically to content distributed on YouTube and not its own platforms. The complaint highlighted that YouTube had notified Disney as early as June 2020 about numerous videos, including popular titles like ‘Frozen’ and ‘Toy Story,’ that were incorrectly designated, leading to potential data collection for targeted advertising.
As part of the settlement, Disney is required to establish an Audience Designation Program to accurately classify all its YouTube videos. The agreement also paves the way for YouTube to adopt age assurance technology, which could eventually streamline compliance by identifying viewer ages directly.
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