Disney to pay $10 million to settle FTC complaint over collection of children’s data on YouTube

The Walt Disney Company will pay $10 million to settle Federal Trade Commission allegations that it enabled the unlawful collection of children’s personal data on YouTube.

The FTC claimed the company allowed data to be collected from kids who viewed videos directed at children on YouTube without notifying parents or obtaining their consent.

The complaint alleged that Disney violated the Children’s Online Privacy Protection Rule by not labeling some YouTube videos as being made for children. The agency claimed the company was able to collect data from viewers of child-directed content who were under the age of 13 and use it for targeted advertising.

In 2019, after a settlement with the FTC, YouTube began requiring content creators to list whether uploaded videos were “made for kids” or “not made for kids.” The designation ensures that personal information is not collected from the “made for kids” videos and personalized ads will not be served to viewers. Comments are also disabled on those videos.

The proposed settlement would require Disney to pay a $10 million civil penalty, comply with the children’s data protection rule and implement a program to review whether videos posted to YouTube should be designated as “made for kids.”

“Supporting the well-being and safety of kids and families is at the heart of what we do,” the company said in a statement obtained by CNBC. “This settlement does not involve Disney owned and operated digital platforms but rather is limited to the distribution of some of our content on YouTube’s platform. Disney has a long tradition of embracing the highest standards of compliance with children’s privacy laws, and we remain committed to investing in the tools needed to continue being a leader in this space.”

Axios was the first to report the settlement.