Disney to Pay $10M After FTC Probe Into Kids’ YouTube Data
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The Walt Disney Company recently agreed to a deal to pay $10 million to resolve claims that it broke children’s privacy laws by failing to label certain YouTube videos as made for children, which resulted in targeted advertising, according to a new report by the BBC.
The report, published December 30, said that Disney had agreed to a settlement with the US Federal Trade Commission (FTC) back in September to resolve an inquiry into its collection of children’s personal data.
The regulator also argues that, as a result of Disney’s alleged failure to label children’s videos adequately, kids ended up receiving targeted advertising and had their data collected without parental notice or consent.
In addition to paying $10 million, the entertainment giant also agreed to create a new program that would comply with children’s data protection laws, as confirmed by the US Department of Justice.
The BBC report quoted Brett Shumate, an assistant attorney general in the Justice Department’s civil division, who said in a statement that the Justice Department is firmly devoted to ensuring parents have a say in how their children’s information is collected and used.
Disney-Operated Platforms Were Also Included In The FTC Deal
A Disney spokesperson also confirmed that the firm had agreed to the deal and the terms that were initially announced earlier this year, in September.
Previously, the company said that the settlement is limited ot the distribution of some of its content on YouTube, and that it does not involve other digital platforms owned or operated by Disney itself. However, the agreement with the FTC also involves Disney Worldwide Services Inc and Disney Entertainment Operations LLC.
As for YouTube, the company started requiring content creators to place clear labels on uploaded videos that were directed toward kids, which became a standard practice after the 2019 settlement between the FTC and YouTube’s parent company, Google.
The new rule was introduced to avoid targeted ads and personal data collection on kids’ content, which is banned under the 1998 Children’s Online Privacy Protection Act (COPPA). According to the law, creators who make content for kids younger than 13 must notify parents and obtain their consent before they gather any personal information.
However, regulators said that Disney did not identify some of the videos, many of which were uploaded to YouTube during the pandemic, as being made for children, which violates the law.
