Federal settlement forces major media company to pay millions over children’s data
Disney will pay $10 million for violating children’s privacy laws by collecting data from young YouTube viewers without parental consent.Summary
A federal judge approved a $10 million settlement with The Walt Disney Co. after accusations that the company violated federal children’s privacy protections. The Department of Justice, following a referral from the Federal Trade Commission, alleged Disney failed to properly label child-directed videos on YouTube as “Made for Kids,” a designation required to limit data collection from children under 13. This mislabeling allowed YouTube to collect personal data and use it for targeted advertising without parental notification or consent, violating the Children’s Online Privacy Protection Act (COPPA).
The settlement requires Disney to fully comply with COPPA in the future, including notifying parents and obtaining verifiable permission before collecting data from children. Disney must also establish a review process to correctly designate videos as “Made for Kids.”
This requirement will remain unless YouTube implements age-verification technology or removes the option for creators to label content as kid-directed. The case highlights the importance of protecting children’s privacy online and ensuring companies adhere to federal regulations regarding data collection.
(Source：Cleveland)