Disney agrees to a $10 million settlement for allegedly collecting data on children amidst an FTC legal dispute.
The Walt Disney Company has agreed to pay a $10 million settlement to resolve a lawsuit brought by the Federal Trade Commission (FTC) over allegations that the company violated children's privacy laws. The lawsuit accused Disney of failing to properly label some videos uploaded to YouTube as "Made for Kids," which allowed the collection of personal data from children under 13 and its use for targeted advertising.
According to a statement from a Disney spokesperson, the company has a long tradition of embracing the highest standards of compliance with children's privacy laws. The spokesperson also stated that Disney is committed to investing in tools to continue being a leader in children's privacy compliance.
The settlement does not affect Disney's overall business operations or financial performance. It is important to note that the settlement is limited to the distribution of Disney's content on YouTube's platform, and does not involve Disney-owned and operated digital platforms.
The settlement requires Disney to implement an audience designation program to ensure its videos are properly directed as 'made for kids' where appropriate. The settlement does not mention any restrictions on targeted advertising.
This settlement is not a part of the FTC's ongoing effort to enforce children's privacy online, but it is a significant step in holding companies accountable for their compliance with children's privacy laws. Six years ago, Google, the parent company of YouTube, agreed to pay $170 million in a similar settlement.
The FTC has not commented on the settlement amount, and the Walt Disney Company has not yet commented on the settlement. However, the statement from the Disney spokesperson indicates the company's commitment to addressing any issues related to children's privacy and ensuring compliance with applicable laws.
