WASHINGTON (dpa-AFX) - The Walt Disney Company has agreed to pay a $10 million fine to settle allegations from the Federal Trade Commission that it enabled the unlawful collection of children's personal data on YouTube.
The FTC said Disney violated the Children's Online Privacy Protection Act by failing to label certain child-directed videos as 'made for kids.' This omission allowed data to be collected from viewers under 13 and used for targeted advertising without parental consent.
Under the proposed settlement, Disney will pay the civil penalty, adopt enhanced compliance measures, and implement a review system to ensure its YouTube videos are properly designated for children when applicable.
YouTube introduced the 'made for kids' classification in 2019 after its own settlement with the FTC. The designation blocks personalized ads, data tracking, and comments on such videos. Regulators said Disney's failure to comply undermined those safeguards.
Disney, in a statement, stressed that the case applies only to content distributed on YouTube, not its own platforms. 'Supporting the well-being and safety of kids and families is at the heart of what we do,' the company said, adding that it remains committed to maintaining the highest standards of compliance with children's privacy laws.
The settlement highlights growing regulatory scrutiny on how media giants and digital platforms handle content consumed by young audiences.
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