BURSTDisney has agreed to pay the federal government $10 million to settle a lawsuit alleging the company illegally collection the personal data of millions of children.
The suit, filed by the Federal Trade Commission, charged that Disney mined the personal data of children who viewed kid-directed videos on YouTube without notifying parents or obtaining their consent, a move the agency said was a violation of the Children’s Online Privacy Protection Rule.
The government accused Disney of intentionally mislabeled content on YouTube to collect personal data from children younger than 13, and using that data for targeted advertising to children.
Like many major media companies, Disney receives a portion of the revenue YouTube generates from advertising placed with its videos and revenues from advertising that the company sells directly, the agency noted.
In a statement celebrating the settlement, FTC Chairman Andrew Ferguson said the 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."
News of the settlement was first reported by Axios.
Disney is one of the largest providers of news, sports and entertainment in the world, particularly content catering to children and families.