Disney Settles FTC Allegations Over Child Data Collection

Walt Disney has agreed to a $10 million settlement with the U.S. Federal Trade Commission following allegations that it illegally allowed the collection of personal data from children on YouTube without parental notification or consent. The FTC claims Disney failed to label some videos as child-directed, violating federal privacy laws.

The FTC's complaint accused Disney of collecting data from viewers under the age of 13 and using it for targeted advertising, thereby breaching the Children's Online Privacy Protection Rule. This rule mandates that platforms aimed at children under 13 must inform parents and obtain verifiable consent before collecting personal data.

In response, Disney will implement a new audience designation program to ensure videos are correctly categorized on YouTube. While the settlement does not affect Disney's own digital platforms, the company emphasized its commitment to upholding child privacy laws and leading in this area.

(With inputs from agencies.)