Disney Fined $10M for Alleged Children’s Privacy Law Breaches
The Walt Disney Company has agreed to pay a $10 million settlement related to breaches of children’s privacy laws. This decision follows an inquiry by the U.S. Federal Trade Commission (FTC) regarding the collection of children’s personal data.
Settlement Details
The settlement was reached after Disney failed to properly label certain YouTube videos as made for children. This oversight allowed targeted advertising aimed at children without obtaining parental consent, violating the Children’s Online Privacy Protection Act (COPPA).
Key Facts About the Breaches
- Disney will pay $10 million to settle the claims.
- The agreement involves regulatory scrutiny from the FTC and U.S. Department of Justice.
- Settlement discussions initiated in September, following the FTC investigation.
- Disney has over 1,250 YouTube channels, with many videos uploaded during the pandemic.
- Failure to label videos was apparent as early as June 2020.
Regulatory Response
The U.S. Department of Justice highlighted the importance of ensuring parental consent in the collection and use of children’s data. Brett Shumate, an Assistant Attorney General, reinforced the government’s commitment to children’s online privacy.
Implications for Content Creators
Following a 2019 settlement between the FTC and Google, YouTube mandated that content creators label videos intended for children. The purpose of this rule is to prevent targeted advertising and data collection for child-directed content, as stipulated under COPPA.
The complaint filed in California argued that Disney’s mislabeling resulted in inappropriate data collection on child-directed videos. Many popular videos from Disney franchises were implicated in this issue, further complicating the company’s legal responsibilities.
Moving Forward
In light of the settlement, Disney is required to establish a program to enhance compliance with children’s data protection laws. This initiative aims to protect the privacy of its young viewers and uphold regulatory standards in the future.
