The Walt Disney Company has agreed to pay $10 million to settle allegations by the Federal Trade Commission (FTC) that it violated children’s online privacy laws. The settlement, disclosed on Tuesday, addresses claims that Disney failed to properly label certain YouTube videos as “Made for Kids,” allowing personal data to be collected from children under 13 without parental consent. This oversight led to the videos being targeted for online advertising, drawing the attention of federal regulators.
According to the FTC, Disney’s actions violated the Children’s Online Privacy Protection Act (COPPA), which mandates that websites and apps obtain parental consent before collecting personal information from children under 13. The FTC’s complaint highlighted that Disney’s mislabeling exposed children to age-inappropriate features like autoplay, which could lead to viewing non-kid-friendly content. The improperly labeled videos were uploaded to various Disney channels, including Disney Junior and Pixar Cars.
This case marks the first known instance of a YouTube content provider settling with the FTC over children’s privacy violations since the agency’s 2019 settlement with YouTube and Google. As part of the settlement, Disney will implement a program to review whether videos should be designated as “Made for Kids.” However, the company may phase out this program if YouTube successfully implements age assurance technology to ensure COPPA compliance.
Disney acknowledged the error and emphasized its commitment to children’s safety. “Supporting the well-being and safety of kids and families is at the heart of what we do,” Disney stated, noting its long tradition of complying with children’s privacy laws. The settlement only pertains to Disney content on YouTube, not Disney-owned and operated sites.
The settlement underscores the FTC’s commitment to enforcing COPPA, ensuring that parents, not companies, make decisions about their children’s personal information online. FTC Chairman Andrew Ferguson stated, “Our order penalizes Disney’s abuse of parents’ trust and makes room for the future of protecting kids online.”
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