Disney to Pay $10 Million Fine Over YouTube Children’s Content

The Walt Disney Company has agreed to pay a fine of $10 million to settle a complaint from the Federal Trade Commission (FTC) regarding certain YouTube videos aimed at children that collected personal data without parental consent.

This situation requires Disney to adhere to the 1998 Online Privacy Protection Act (COPPA) guidelines. Reportedly, this comes six years after the FTC mandated that YouTube label content as “Made for Kids” (MFK).

The FTC accused YouTube of failing to relabel 300 videos in 2020, even after notifying the company about the necessary changes.

As part of the settlement, Disney has also promised to implement a program that will help identify when a video should be labeled for children in the future.

The FTC commented, stating that the case underscores its dedication to enforcing COPPA, which was designed to empower parents over companies like Disney regarding the collection of children’s online data.

In addition, the FTC noted that the penalties aim to address Disney’s breach of trust with parents and to pave the way for better protections for kids online through a mandatory video review process.

Interestingly, Disney is not held accountable for the audience designation program after YouTube applied AI to categorize age-specific videos.

A spokesperson for Disney remarked, “At the core of our work is supporting the happiness and safety of our children and families.” They clarified that the fine pertains specifically to some content on YouTube and does not extend to Disney’s own digital platforms.

The spokesperson also emphasized Disney’s longstanding commitment to compliance with child privacy laws and the continued investment in necessary tools to maintain a leadership position in this area.