Disney has agreed to pay $10 million to the Federal Trade Commission (FTC) to resolve claims that it collected children’s personal data on YouTube without proper consent.
According to the FTC, Disney did not consistently mark certain videos as “Made for Kids,” a label required to limit data tracking and targeted advertising and ensure compliance with the US Children’s Online Privacy Protection Act (COPPA), which mandates parental permission for collecting information from users under 13.
The FTC reported that in June 2020, YouTube identified approximately 300 Disney-uploaded videos, including content from titles such as The Incredibles, Coco, Toy Story, Tangled, and Frozen, that were not flagged as “Made for Kids.” YouTube subsequently changed the labels and continued updating them over the next two years due to ongoing mislabelling issues.
The labelling issue came up because Disney designated video categories at the channel level instead of for each individual video. This led to instances where content intended for children was uploaded to channels marked “Not Made for Kids,” causing non-compliance with COPPA.
Under the settlement, Disney will review and update its practices to comply with COPPA regulations, including implementing a video-review program unless YouTube introduces its own age-assurance technologies. The agreement also requires Disney to revisit how it labels content and manages advertising revenue related to children’s programming.
FTC Chairman Andrew N. Ferguson described the order as addressing labelling practices and supporting future measures to protect children online through age-assurance technology. Disney said it remains committed to upholding children’s privacy standards and investing in tools to support the safety of children and families online.
