Disney to pay $10 million to settle FTC case over children’s data collection
The US Federal Trade Commission (FTC) claimed that Disney collected data from children who viewed kid-directed videos on YouTube without notifying parents or obtaining consent.
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Walt Disney has settled a case filed by the US Federal Trade Commission (FTC), which alleged that the media company unlawfully collected personal data from children. According to a Reuters report, the FTC claimed that Disney collected data from children who viewed kid-directed videos on YouTube without notifying parents or obtaining consent. Disney has agreed to pay $10 million for case settlement.
In its complaint, the FTC said Disney failed to label some YouTube videos as "Made for kids" when they were uploaded to the platform.
The mislabelling allowed Disney to collect personal data from viewers under the age of 13 via YouTube, which was then allegedly used for targeted advertising. The FTC said this violated the US Children’s Online Privacy Protection Rule (COPPA).
Disney earns revenue from ads it places on its own videos and from YouTube, which pays Disney for ads it inserts on Disney content, the FTC said. The mislabeling exposed children to age-inappropriate YouTube features, such as autoplay leading to videos not designated as “made for kids,” the agency claimed.
The court has asked Disney to implement an audience designation program to ensure its videos are properly flagged as “made for kids” where appropriate.
A Disney spokesperson told Reuters that the company remains committed to investing in the tools needed to continue being a leader in this space.
The spokesperson added that Disney has a long tradition of adhering to the highest standards of compliance with children’s privacy laws.
