Disney Settles FTC Allegations Over Children's Data Collection for $10 Million

The Walt Disney Company has agreed to pay a $10 million settlement to the U.S. Federal Trade Commission (FTC) in response to allegations that it unlawfully allowed the collection of personal data from children under 13 on YouTube. The FTC's complaint asserted that Disney failed to properly label certain videos as “Made for Kids,” which resulted in the collection of children's data without parental consent, violating the Children’s Online Privacy Protection Act (COPPA).

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The FTC claimed that Disney misclassified videos uploaded to YouTube between 2020 and 2022, allowing the platform to collect personal data from young viewers and serve targeted advertisements. This mislabeling occurred despite YouTube notifying Disney in mid-2020 that over 300 videos had been incorrectly categorized. The complaint highlighted that Disney's blanket designation of its YouTube channel content as “Not Made for Kids” led to violations of COPPA, which mandates parental consent for data collection from children.

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As part of the settlement, Disney is required to implement an audience designation program to ensure that its videos are accurately labeled as “Made for Kids” when appropriate. This program aims to prevent future violations and enhance compliance with children's privacy laws. The settlement does not extend to Disney's own digital platforms but focuses solely on content distributed via YouTube.

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In response to the settlement, a Disney spokesperson emphasized the company's commitment to children's safety, stating, “Supporting the well-being and safety of kids and families is at the heart of what we do.” The spokesperson reiterated that the settlement pertains only to content on YouTube and not Disney's owned platforms, asserting that the company has a long-standing tradition of adhering to high standards of compliance with children's privacy laws.

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FTC Chairman Andrew Ferguson remarked that the case underscores the agency's commitment to enforcing COPPA, emphasizing that parents should have control over their children's data collection. He stated, “Our order penalizes Disney’s abuse of parents’ trust, and, through a mandated video-review program, makes room for the future of protecting kids online—age assurance technology.”

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This settlement marks a significant moment in the ongoing scrutiny of children's data privacy, particularly concerning content creators on third-party platforms like YouTube. It sets a precedent for potential penalties against other entertainment companies that may have similarly failed to comply with COPPA regulations. The case highlights the increasing regulatory focus on protecting children's digital privacy and the responsibilities of content providers.

Disney to Pay $10 Million in U.S. Settlement Over Children’s Data Collection

Disney's compliance with the settlement will be monitored, and the company must establish the audience designation program to ensure proper labeling of its videos. This settlement could pave the way for further regulatory actions against other content providers in the future, as the FTC continues to enforce children's privacy protections rigorously.

Disney to Pay $10 Million in U.S. Settlement Over Children’s Data Collection

• “This case underscores the FTC’s commitment to enforcing COPPA, which was enacted by Congress to ensure that parents, not companies like Disney, make decisions about the collection and use of their children’s personal information online,” — Andrew Ferguson, FTC Chairman

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• “A Disney spokesperson said, “Supporting the well-being and safety of kids and families is at the heart of what we do.” — Disney Spokesperson

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