Disney agrees to pay a $10 million fine to the Federal Trade Commission (FTC) for illegally gathering personal data from children on YouTube.
Disney Settles FTC Lawsuit Over Children's Data Collection on YouTube
In a significant development, Disney has agreed to pay a $10 million settlement to the Federal Trade Commission (FTC) over allegations of illegally collecting personal data from children on YouTube. The lawsuit accuses Disney of mislabeling certain videos made for youngsters, which allowed targeted ads to be served, in violation of the Children's Online Privacy Protection Act (COPPA).
The settlement does not involve Disney-owned and operated platforms but is limited to the distribution of some of its content on YouTube. Under the terms of the agreement, Disney will create a program to review whether videos posted to YouTube should be designated as made for kids.
YouTube began requiring creators to indicate if their videos are made for children or not in 2019. However, the FTC claims that Disney mislabeled certain videos, allowing targeted ads to be served on content intended for children. The mislabeled videos include content from popular Disney movies like Frozen, Inside Out, and Encanto featuring sing-alongs and story times.
Since 2020, at least 12 ad campaigns with over 350,000 impressions ran on Disney channels that should've barred targeted advertising. Alphabet-owned YouTube told Disney that it had changed the designations on over 300 of Disney's videos, but Disney did not comply.
The FTC's statement emphasizes its commitment to enforcing COPPA and protecting children's personal information online. The settlement includes a penalty for Disney's abuse of parents' trust and makes room for the development of age-assurance technology.
The spokesperson for Disney stated that the company has a long tradition of embracing the highest standards of compliance with children's privacy laws. They also mentioned that Disney remains committed to investing in tools to continue being a leader in children's privacy compliance.
It's important to note that the settlement does not involve any allegations of pay discrimination by Disney's top lawyers. The settlement may open the door for similar payouts from other big entertainment companies.
Disney was prompted by concerns about the suitability of videos for children on YouTube, likely influenced by regulatory pressures and public scrutiny over child-related content. However, specific details on who exactly initiated the Disney program and the precise release date are not provided in the available search results.
The FTC's action against Disney underscores the importance of complying with COPPA and protecting children's personal information online. As more and more content is consumed by children on digital platforms, it is crucial for companies to ensure that they are following the proper guidelines to protect young users.
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