The Walt Disney Company has agreed to pay $10 million to settle the United States Federal Trade Commission allegations that it unlawfully enabled the collection of children’s personal data on YouTube.

According to the FTC, Disney failed to label certain YouTube videos as child-directed, allowing data to be collected from viewers under 13 without parental notice or consent. The agency said this violated the Children’s Online Privacy Protection Rule and enabled the use of children’s data for targeted advertising.

Under the proposed settlement, Disney must pay a $10 million civil penalty, comply with children’s data protection requirements, and establish a review process to determine whether its YouTube content should be classified as “made for kids.”

YouTube introduced the “made for kids” designation in 2019 after a separate FTC settlement, ensuring that personal data is not collected, ads are not personalized, and comments are disabled on such videos.

“Supporting the well-being and safety of kids and families is at the heart of what we do,” a Disney spokesperson said.

“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.”
“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,” they added.