Disney FTC settlement overview:
- Who: Disney agreed to a settlement with the Federal Trade Commission (FTC).
- Why: The FTC alleged Disney violated the Children’s Online Privacy Protection Rule (COPPA) by failing to properly label certain Youtube videos.
- Where: The Disney FTC settlement was filed in California federal court.
- How to Make a Claim: Details on how to file a claim were not immediately available. Sign up for our free newsletter to receive claim-filing instructions once they’re available, and check out what FTC settlements are paying out this month.
Disney agreed to pay $10 million to resolve allegations it violated the Children’s Online Privacy Protection Rule by failing to properly label some videos uploaded to YouTube as “made for kids.”
The Federal Trade Commission filed a complaint against Disney Worldwide Services and Disney Entertainment Operations in California federal court.
The FTC alleged Disney failed to properly label videos as “made for kids”, thus exposing them to “age-inappropriate YouTube features.” The agency also ruled that Disney violated the COPPA by facilitating the “unlawful collection” of children’s personal data and using it for targeted advertising.
The videos in question included content from Disney movies, such as “Coco,” “Frozen” and “Toy Story,” as well as music from “The Incredibles,” according to the FTC.
“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 — (by using) age assurance technology,” FTC Chairman Andrew N. Ferguson said in a statement.
Disney to create program to review whether videos should be labeled ‘made for kids’
Disney’s agreement with the FTC calls for the company to create a program to review whether videos posted to YouTube should be designated as “made for children”, the agency said.
A Disney spokesperson told CBS News that the settlement does not apply to Disney-owned or operated digital platforms and instead only covers certain content on the company’s YouTube channel.
YouTube requires creators to mark videos as “made for kids” when the primary audience is children or when the content shows “an intent to target children,” according to the Alphabet-owned platform.
The company notes on its website that failing to do so could result in “legal consequences under COPPA and other laws.” This labeling rule was introduced in 2019 after YouTube reached a $170 million settlement with the FTC over COPPA violations.
“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,” the spokesperson said in a statement.
In a recent settlement in August, Google and YouTube agreed to pay $30 million to resolve a long-running class action lawsuit alleging they unlawfully collected data from children under 13 to serve targeted ads without parental consent.
What do you think of the allegations Disney violated COPPA? Let us know in the comments.
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