Disney too Pay $10m Over Children’s Privacy on YouTube

The Walt Disney Company will pay $10m (£7.4m) to resolve claims that it broke children’s privacy laws by failing to label some YouTube videos as made for children, allowing for targeted advertising.

Disney had agreed to a settlement with the US Federal Trade Commission (FTC) in September to resolve an inquiry into its collection of children’s personal information.

The FTC alleged that Disney failed to comply with the Children’s Online Privacy Protection Act (COPPA), which requires companies to get parental consent before collecting personal information from children under 13.

Specifically, the complaint focused on Disney’s YouTube channels. Under COPPA, YouTube is required to treat videos made for children differently than those aimed at general audiences, limiting data collection and targeted advertising.

The FTC said Disney knew that some of its YouTube channels where popular with children, but did not properly designate them as “made for kids.” This allowed advertisers to track viewing habits and target children with ads.

As part of the settlement, Disney is required to implement a comprehensive COPPA compliance programme and undergo independent audits for the next 20 years.

“Disney failed to protect the privacy of children and young teens who used its online services,” said FTC Chair Lina Khan in a statement. “This settlement ensures that Disney will be held accountable for its failures and will take steps to comply with COPPA going forward.”

Disney said it was “committed to protecting the privacy of children” and had already taken steps to comply with COPPA.

The settlement comes as regulators worldwide are increasing scrutiny of how tech companies collect and use data from children.