Disney agreeing to compensate $10 million to resolve a lawsuit with the FTC over claims of collecting children's data without consent
Disney Settles FTC Lawsuit Over Children's Data Collection on YouTube
The Walt Disney Company has agreed to pay a $10 million fine to settle a Federal Trade Commission (FTC) lawsuit over the mislabelling of content on YouTube. The settlement is limited to the distribution of Disney content on YouTube's platform.
According to the FTC, Disney did not properly label some videos uploaded to YouTube as "Made for Kids." This mislabelling allowed Disney to collect personal data from children under 13 and use it for targeted advertising, which is a violation of the Children's Online Privacy Protection Act.
The new settlement does not involve Disney-owned and operated digital platforms. It also does not provide specific details about the personal data that was collected and used for targeted advertising, nor does it specify any changes to Disney's data collection and storage policies for children's data.
Disney remains committed to investing in the tools needed to continue being a leader in children's privacy compliance. A Disney spokesperson stated that the company has a long tradition of embracing high standards of compliance with children's privacy laws.
The settlement requires Disney to implement an audience designation program to ensure its videos are properly labeled as "Made for Kids" where appropriate. This is a step towards ensuring the protection of children's privacy online.
It's worth noting that Google, the parent company of YouTube, paid $170 million in a similar settlement six years ago. The lawsuit accuses Disney of violating the same law that Google was found to have breached.
Chris Mufarrige, who led the organization "Integrity in Media" when he spoke in 'The Bottom Line,' was involved in the case that led to The Walt Disney Company paying the fine. The settlement does not address Disney's current themed tavern offerings or reservation policies, which are separate matters.
A Disney spokesperson reiterated the company's commitment to being a leader in targeted advertising practices, but the new settlement does not mention any implications for these practices. However, the company's commitment to children's privacy compliance suggests a focus on improving its data collection and storage policies in this area.
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