Disney's Data Grab $10 Million Price Tag for YouTube Kids' Privacy Fail!

Disney to Pay $10 Million in FTC Settlement Over Children's Data on YouTube

The Walt Disney Company is set to pay a $10 million penalty to settle allegations from the Federal Trade Commission (FTC) regarding the unlawful collection of children's personal data on YouTube. This settlement highlights the ongoing scrutiny of online platforms and content creators regarding compliance with children's privacy laws.

The FTC's complaint centers around the assertion that Disney permitted the collection of data from children viewing videos aimed at them on YouTube without proper parental notification or consent. This alleged violation falls under the Children's Online Privacy Protection Rule (COPPA), a law designed to protect the privacy of children under 13 online.

Specifically, the FTC claimed that Disney failed to properly designate certain YouTube videos as being "made for kids." This misclassification allegedly allowed the company to collect data from viewers under 13 and utilize it for targeted advertising purposes. This practice directly contradicts the principles of COPPA, which requires verifiable parental consent before collecting, using, or disclosing personal information from children.

The core of the issue revolves around how content is categorized on YouTube and the subsequent data collection practices. Here's a breakdown:

• The Allegation: Disney failed to properly label some YouTube videos as "made for kids."
• The Consequence: This allegedly allowed the collection of data from viewers under 13.
• The Use: The collected data was purportedly used for targeted advertising.

Following a 2019 settlement with the FTC, YouTube implemented a system requiring content creators to designate whether their uploaded videos are "made for kids" or "not made for kids." This designation is crucial because it triggers specific restrictions:

• Personal information is not collected from "made for kids" videos.
• Personalized ads are not served to viewers of "made for kids" videos.
• Comments are typically disabled on "made for kids" videos.

The proposed settlement with Disney includes several key components:

1. A $10 million civil penalty paid to the FTC.
2. Compliance with the Children's Online Privacy Protection Rule (COPPA).
3. Implementation of a program to review videos posted to YouTube to ensure accurate "made for kids" designations.

In a statement obtained by CNBC, Disney emphasized its commitment to children's safety and privacy: "Supporting the well-being and safety of kids and families is at the heart of what we do. This settlement does not involve Disney owned and operated digital platforms but rather is limited to the distribution of some of our content on YouTube's platform. Disney has a long tradition of embracing the highest standards of compliance with children's privacy laws, and we remain committed to investing in the tools needed to continue being a leader in this space."

While the settlement focuses on content distributed on YouTube, it serves as a crucial reminder for all content creators and platforms about the importance of adhering to COPPA regulations and prioritizing the privacy of young viewers. The future of online safety for children depends on continuous diligence and proactive measures from all stakeholders involved. This action underscores the FTC's commitment to enforcing children's online privacy and holding companies accountable for their data collection practices.

Source: https://www.cnbc.com/2025/09/03/disney-ftc-youtube-childrens-data.html