Disney Settles FTC Lawsuit: $10M Fine for Illegally Collecting Kids' Data

Disney has agreed to pay $10 million to settle a lawsuit filed by the U.S. Federal Trade Commission (FTC) over the illegal collection of children"s data on YouTube. The settlement, announced today, comes after allegations that Disney failed to properly label some of its videos for children, allowing the company to collect personal data without parental consent.

The FTC"s lawsuit claimed that Disney violated the Children"s Online Privacy Protection Act (COPPA), which mandates that companies obtain verifiable parental consent before collecting personal information from children under 13 years old. By not designating certain videos as "made for kids," Disney was able to gather data for targeted advertising purposes.

This settlement requires Disney to implement an Audience Identification Program to ensure that all videos published on YouTube are accurately classified. This measure aims to prevent similar violations in the future and protect children"s privacy online.

The case highlights ongoing concerns about data privacy and the responsibilities of major corporations in safeguarding children"s information. As companies face increasing scrutiny over data collection practices, the Disney settlement serves as a reminder of the importance of compliance with federal regulations. For related coverage, see our earlier coverage on recent developments in child safety issues.