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WASHINGTON (AP) — The Walt Disney Co. will pay a $10 million
fine to settle a Federal Trade Commission lawsuit alleging it
allowed personal data to be collected on kids under 13,
violating federal law.
The FTC said Tuesday Disney violated the Children’s Online
Privacy Protection Act, or COPPA, which requires kid-oriented
apps and websites to get parents’ consent before collecting
personal information of children under 13.
According to the complaint, Disney failed to properly label some
videos that it uploaded to YouTube as “Made for Kids.” The
mislabeling allowed Disney, through YouTube, to collect personal
data from children under 13 viewing child-directed videos and
use that data for targeted advertising to children, the FTC
said. That's because, since the videos weren't labeled as being
for kids, they included targeted advertising.
Representatives for Disney did not immediately return a message
for comment.
Google, the parent company of YouTube, agreed to pay $170
million in a similar settlement in 2019.
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