FTC says Disney unlawfully collected kids’ data on YouTube for targeted ads
Complaint alleges Disney failed to mark some videos as “Made for Kids,” allowing tracking
Proposed settlement requires COPPA compliance and a video-review program
The Walt Disney Co. will pay $10 million to settle Federal Trade Commission allegations that it unlawfully collected personal data from children to enable targeted advertising on YouTube.
In a complaint filed by the Justice Department, the FTC said Disney didn’t properly label some of its YouTube uploads as “Made for Kids,” a designation that disables data collection and targeted ads. The mislabeling, regulators said, allowed tracking of viewers under 13 and exposed children to features not appropriate for kid-directed content.
Disney earns a share of ad revenue from commercials served with its YouTube videos and also from ads it sells directly, according to the FTC.
'Made for Kids' label
Under the proposed settlement, Disney must follow the Children’s Online Privacy Protection Rule (COPPA) and roll out a program to review whether videos should be designated “Made for Kids,” unless YouTube implements its own age-assurance technologies.
“Our order penalizes Disney’s abuse of parents’ trust, and, through a mandated video-review program, makes room for the future of protecting kids online—age assurance technology,” FTC Chairman Andrew N. Ferguson said.
A Disney spokesperson said the company is “committed to supporting the well-being and safety of kids and families,” adding that Disney has a long tradition of “embracing the highest standards of compliance with children’s privacy laws” and will continue investing in tools to remain a leader in the space.
Google’s YouTube requires publishers to mark content as made for children; doing so limits data collection and certain features to comply with COPPA. The FTC’s order follows years of heightened scrutiny of how platforms and content owners treat children’s data online.
What you need to know
High-profile company involved: Disney will pay $10 million and face new compliance requirements.
Why it matters: The FTC says some Disney videos on YouTube weren’t labeled “Made for Kids,” enabling data collection and targeted ads for children under 13.
What changes: Disney must follow COPPA and implement a video-review program to ensure proper kid-content labeling, unless YouTube adds age-assurance tech.