"The fine targets Disney for content that wasn't uploaded to its own platforms, likely opening the door to penalties against other content providers that distribute their work on other sites and apps. State of play: The FTC complaint alleges Disney failed to designate certain YouTube videos as being made for children when it added them to the platform. In failing to do so, Disney inadvertently allowed those videos to be targeted with online advertising, which is why the FTC considers the improper designation problematic."
"Between the lines: In failing to categorize the videos correctly, the FTC claims Disney violated the 1998 Children's Online Privacy Protection Act (COPPA). The law requires companies to notify users of content directed toward children when data tracking occurs, and requires them to obtain parental consent for such tracking. Zoom in: The complaint also claims that the viewers of those videos, who were presumably children, also had their data collected without parental consent."
The FTC alleges Disney failed to designate certain YouTube videos as made for children when uploaded, allowing those videos to be targeted with online advertising. The FTC says this violated the 1998 Children's Online Privacy Protection Act (COPPA), which requires notification and parental consent for data tracking of child-directed content, and that viewers, presumably children, had their data collected without parental consent. The videos are mostly storytime recordings uploaded early in the COVID-19 pandemic featuring celebrities reading to kids. Disney concedes an administrative error and will establish an Audience Designation program to formalize review and categorization before uploads. The videos represent a tiny fraction of Disney's YouTube content but the settlement could enable broader enforcement against other content providers distributing work on third-party platforms.
Read at Axios
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