Walt Disney has agreed to pay a multi-million dollar settlement over allegations from the Federal Trade Commission that the company unlawfully allowed the collection of personal data of children.
Disney will pay $10 million as a result of the claim that the company enabled data to be collected from children who viewed kid-directed videos on YouTube without parental consent. The case alleged that Disney did not label certain YouTube videos as being made for children when they were uploaded to the platform.
As a result, the complaint said Disney, via YouTube, was able to deliver targeted advertising to children who were under age 13 using the unlawfully gathered data. Websites, apps, and other online services are required to notify parents about the personal details they collect on videos made for children under 13. They must also obtain verifiable parental consent before gathering the personal data.
As part of the proposed order, a court filing said Disney must “implement an audience designation program to ensure its videos are properly directed as ‘made for kids’ where appropriate,” per Reuters.
“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,” a Disney spokesperson said.
“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.”
Earlier this year, The Dallas Express reported that Disney was also the target of the Federal Communications Commission. The FCC launched an investigation into Disney and ABC, alleging that their diversity, equity, and inclusion (DEI) initiatives potentially violated federal anti-discrimination laws. In a letter to Disney CEO Robert Iger, FCC Chairman Brendan Carr referenced whistleblower accounts claiming the company implemented race-based hiring and only extended certain opportunities to select demographic groups.