FTC Discusses Disney’s $10 Million Settlement over Children’s Data
On Tuesday, Chris Mufarige, the FTC’s Director of Consumer Protection, appeared on Fox Business’s “The Bottom Line” to talk about Disney’s recent $10 million settlement concerning the collection of children’s data through YouTube.
The settlement stems from allegations that Disney allowed the collection of children’s personal data from “kid-friendly” YouTube videos without proper parental notice or consent. Mufarige emphasized the violation of the Children’s Online Privacy Protection Act (COPPA) during his conversation with Dagen McDowell, noting that children’s safety online is a central focus for the commission. “The settlement with Disney highlights how we’ve found that COPPA was violated,” he said.
He elaborated, saying that Disney misclassified some videos, which resulted in children accessing potentially harmful content. “Our order aims to ensure that parents can trust their children are safe moving forward,” he added.
Originally passed in 1998, COPPA makes it illegal for websites or services aimed at children under 13 to collect personal information without parental consent. Updates in 2012 expanded the rules to require more notifications for parents and broadened the definition of what counts as personal information.
The FTC’s complaint indicated that Disney, through its various operations, failed to accurately label videos as “Made for Kids,” which ultimately led to the collection of personal data from children viewing this content.
When McDowell questioned whether Disney was purposely neglecting child protections, Mufarige explained that the company employs a range of video designation programs. “Our orders are there to ensure that Disney properly reviews and labels its content at the video level,” he said.
Following the settlement announcement, a Disney spokesperson clarified that the issues highlighted in the allegations were limited to certain content on YouTube and did not involve their own digital platforms. “Disney is committed to adhering to the highest standards of children’s privacy laws,” the spokesperson stated, asserting their intent to invest in compliance tools.
The company has faced scrutiny recently for its focus on social justice and inclusion within its films and corporate practices. In February, Disney decided to update its diversity and inclusion programs in response to changing federal policies.
