Disney has agreed to pay 10 million dollars after U.S. authorities said the company broke important rules designed to protect children’s privacy online. The case was brought forward by the Federal Trade Commission (FTC).
Why Disney Faced Action
The FTC claimed that Disney collected personal information from children watching YouTube videos. These videos targeted kids, but Disney allegedly failed to take the required steps to protect young viewers.
When companies upload videos made for children, they must mark them correctly. This is because U.S. law, called the Children’s Online Privacy Protection Rule (COPPA), says that services for kids under 13 must first inform parents and get their permission before gathering any personal information.
The complaint said Disney failed to label certain videos as “made for kids.” Because of this, the platform was able to gather personal data from children under 13. That information was then reportedly used for targeted advertising, meaning children were shown ads based on the data collected from them.
This was seen as a direct violation of the rules set to protect children online. The FTC stressed that companies cannot collect personal data from children without the proper notice to parents and their approval.
What the Settlement Covers
The settlement with the FTC requires Disney to pay 10 million dollars. Along with the payment, Disney must also put in place new measures to ensure such problems do not happen again.
According to the settlement order, Disney must now set up an audience designation program. This means Disney must clearly mark all content it uploads on YouTube as either made for children or not. The system prevents confusion and ensures that Disney always flags videos aimed at children correctly.
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It is important to note that the case was not about Disney’s own websites or digital platforms. The settlement only deals with how Disney content was uploaded and shared on YouTube. The company made it clear that none of its own apps or websites were part of the allegations.
This case shows how seriously U.S. regulators take the rules around protecting children online. Even a company as large as Disney must follow strict privacy laws when it comes to collecting data from young viewers.
Disney’s Response to the Case
Disney confirmed the settlement but highlighted that the issue only involves content it distributed on YouTube. The company said it continues to follow children’s privacy laws and has always worked to meet the highest standards of compliance.
Disney also explained that it will add more tools and processes to ensure it leads the way in child privacy protection. By agreeing to the settlement, Disney avoids a longer legal fight, but it also accepts the responsibility of improving its systems to comply with the rules.
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The company underlined that its main focus remains on providing safe and enjoyable content for families while ensuring that children’s personal information stays protected.
The FTC’s action and the settlement serve as a reminder that companies handling content for children must always be careful about privacy and data use. The fine and the new compliance requirements aim to keep children’s online activities safe from unlawful data collection.
