Disney has agreed to a $10 million settlement for a Federal Trade Commission complaint alleging its unwarranted collection of personal information from children watching its videos on YouTube, which violates the Children's Online Privacy Protection Rule, according to The Record, a news site by cybersecurity firm Recorded Future.
Due to a failure to provide a "Made for Kids" label from numerous YouTube videos, Disney was able to profit from targeted advertising aimed at children, said the FTC. Aside from fulfilling the monetary penalty, Disney has also been ordered in the proposed settlement to inform and obtain consent from parents before gathering data from youths under 13, as well as establish a program that would guarantee proper labels on child-targeted content.
"This case underscores the FTC's commitment to enforcing COPPA, which was enacted by Congress to ensure that parents, not companies like Disney, make decisions about the collection and use of their children's personal information online," said FTC Chair Andrew Ferguson.
Due to a failure to provide a "Made for Kids" label from numerous YouTube videos, Disney was able to profit from targeted advertising aimed at children, said the FTC. Aside from fulfilling the monetary penalty, Disney has also been ordered in the proposed settlement to inform and obtain consent from parents before gathering data from youths under 13, as well as establish a program that would guarantee proper labels on child-targeted content.
"This case underscores the FTC's commitment to enforcing COPPA, which was enacted by Congress to ensure that parents, not companies like Disney, make decisions about the collection and use of their children's personal information online," said FTC Chair Andrew Ferguson.
