Walt Disney has agreed to pay $10 million to settle allegations by the U.S. Federal Trade Commission (FTC) that the company unlawfully allowed the collection of personal data from children under the age of 13 who watched Disney-related videos on YouTube without proper parental consent.
The FTC complaint alleged that Disney failed to properly mark certain kid-directed videos as “made for children” on YouTube. This mislabeling allowed personal data such as viewing history and identifiers to be collected from young viewers, which was then used for targeted advertising to children, Reuters news report said.
FTC’s Allegations Against Disney
According to the FTC, Disney violated the Children’s Online Privacy Protection Act (COPPA), a law requiring websites, apps, and digital services directed at children under 13 to:
Notify parents about what personal information is collected.
Obtain verifiable parental consent before collecting or using that data.
The FTC said Disney’s actions bypassed these rules, exposing children’s personal data without legal safeguards.
Settlement Terms
The proposed order requires Disney to:
Pay $10 million in settlement.
Implement an audience designation program to ensure that videos distributed on YouTube are correctly identified as “made for kids.”
This measure aims to prevent improper data collection from child viewers in the future.
Disney’s Response
Disney emphasized that the settlement is limited to content distribution on YouTube and does not involve Disney-owned or operated digital platforms.
A Disney spokesperson stated:
“Disney has a long tradition of embracing the highest standards of compliance with children’s privacy laws, and we remain committed to investing in the tools needed to continue being a leader in this space.”
The company added that it continues to work closely with regulators to align its practices with child privacy protection standards.
Why This Matters
The case highlights increasing regulatory scrutiny of children’s privacy online, especially as video platforms and content providers expand their digital presence. With COPPA violations carrying significant financial and reputational risks, this settlement reinforces the FTC’s stance on protecting children’s data in the digital ecosystem.
For parents, it serves as a reminder to remain vigilant about how children’s online activity and viewing habits may be tracked and monetized.
Shafana Fazal
