The Federal Trade Commission announced that Disney will pay $10 million to settle allegations that the entertainment giant allowed data collection on YouTube videos meant for children. Under the Children’s Online Privacy Protection Rule, also known as COPPA, companies are required to notify parents and obtain parental consent if they collection information from minors. According to the FTC complaint, Disney failed to properly label some YouTube videos as “Made for Kids,” which allowed the company to collect data and deliver targeted ads to viewers younger than 13.
The proposed order from the FTC would also require Disney to create a review process for determining when and how videos are correctly designated with YouTube’s Made for Kids label. YouTube rolled out the Made for Kids tags following a $170 million settlement in 2019 on charges that the video platform had violated COPPA. Google faced an additional settlement of $30 million last month from a similar class-action lawsuit.