Disney has agreed to pay $10 million to settle allegations of illegally collecting children’s personal information. The United States Federal Trade Commission (FTC) stated that Disney failed to properly label children’s videos on YouTube, leading to the collection of personal information from children under 13 without parental consent, in violation of the Children’s Online Privacy Protection Act.
A Disney spokesperson has confirmed the settlement. This incident has raised concerns among investors about Disney’s compliance with digital content management. Disney’s primary business in videos includes film production, television shows, theme parks, and streaming media services.
Previously, the FTC accused Disney of uploading some YouTube videos without labeling them as “made for kids.” Due to improper labeling, Disney was able to collect personal information from viewers under 13 on YouTube and use this information for targeted advertising to children, violating the Children’s Online Privacy Protection Rule (COPPA).
According to COPPA, websites, applications, and online services targeting children under 13 must notify parents before collecting children’s personal information and obtain verifiable parental consent.
The FTC has demanded that Disney implement an audience categorization plan and correctly label videos with the “made for kids” tag.
A Disney spokesperson stated that this settlement only applies to certain videos posted on YouTube, and the content on their platform “Disney+” is not involved in this violation. Disney will continue to invest resources to ensure compliance with relevant regulations to protect children’s privacy.
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The news was sourced from Reuters.