Disney to pay $10 million to settle FTC lawsuit over collecting kids’ data
Disney has agreed to pay $10 million to settle accusations made by the Federal Trade Commission (FTC) regarding the unauthorized collection of children’s personal data. The FTC filed a complaint stating that Disney Worldwide Services and Disney Entertainment Operations violated the Children’s Online Privacy Protection Rule (COPPA) by not properly labeling certain videos uploaded to YouTube as “made for kids.” This mislabeling exposed children to inappropriate YouTube features, according to the FTC.
COPPA, enacted in 1998, mandates that commercial website operators inform parents of children under 13 about the collection of personal data and obtain parental consent. The videos in question included content from popular Disney movies like “Coco,” “Frozen,” “Toy Story,” and music from “The Incredibles.”
A Disney spokesperson clarified that the settlement only pertains to some content on the company’s YouTube platform and does not involve Disney-owned digital platforms. Disney has a history of complying with children’s privacy laws and is committed to maintaining high standards in this area.
YouTube requires videos to be labeled as “made for kids” if they are primarily targeted at children or if the content indicates an intention to appeal to children. Failure to label videos correctly could result in legal repercussions under COPPA and other laws. YouTube implemented the “made for kids” label requirement after reaching a similar settlement with the FTC in 2019 for COPPA violations.
As part of the agreement with the FTC, Disney will establish a program to review and designate videos posted on YouTube as suitable for children.
Mary Cunningham, a reporter for CBS MoneyWatch, provided this information. She previously worked at “60 Minutes,” CBSNews.com, and CBS News 24/7 through the CBS News Associate Program.
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