A judge has officially approved the order requiring Disney to pay $10 million to the Federal Trade Commission (FTC) for violating the Children’s Online Privacy Protection Act (COPPA) Rule.
Disney to Pay $10 Million for Violating COPPA Rule
The original complaint, filed by the Department of Justice on notification and referral from the FTC, alleged that Disney had violated the COPPA Rule, which “requires websites, apps and other online services that are directed to children under 13 to notify parents about what personal information they collect and obtain verifiable parental consent before collecting such information.”
The order pertains specifically to Disney’s YouTube account, which was alleged to have been collecting children’s data by mislabeling some targeted videos uploaded to YouTube as “Made for Kids.” This alleged mislabeling allowed Disney to collect personal data from children under 13 years of age and use the data to target advertising to children. The mislabeling also led to videos not “Made for Kids” to autoplay.
YouTube began requiring content creators to mark videos as “Made for Kids” or “Not Made for Kids” following a 2019 settlement with the FTC. YouTube does not collect personal data, deliver targeted ads, or allow comments on “Made for Kids” videos.
Disney had already previously agreed to the terms of the settlement when it was proposed in September.
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