Disney to pay $10 million over alleged improper collection of children’s data on YouTube

The Federal Trade Commission (FTC) says Disney will pay $10 million to settle allegations that the company allowed data collection on YouTube videos directed at children by failing to label them as “Made for Kids,” enabling targeted advertising to viewers under 13 in violation of COPPA.

Key points

• FTC alleges Disney failed to properly mark some YouTube videos as “Made for Kids,” which allowed collection of data and delivery of targeted ads to viewers younger than 13.
• The proposed FTC order would require Disney to create a review process to determine when videos should carry YouTube’s “Made for Kids” label.
• This follows prior COPPA-related enforcement: YouTube paid a $170M settlement in 2019, and Google recently faced a roughly $30M settlement in a related case.

Implications

The case highlights ongoing scrutiny of how platforms and content owners treat children’s data and the importance of correctly identifying child-directed content. The settlement underscores that mislabeling or inconsistent labelling can lead to regulatory action under the Children’s Online Privacy Protection Rule (COPPA).

Sources

• FTC – YouTube LLC case (2019 COPPA settlement)
• Axios — Disney to pay $10M to settle FTC allegations
• LA Times — Disney agrees to $10M settlement with FTC
• CBS News — Coverage of Disney/FTC settlement

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