"WASHINGTON, D.C. - Disney has agreed to pay $10 million to settle a lawsuit from the Federal Trade Commission (FTC), accusing the entertainment giant of violating federal children's privacy laws by improperly labeling child-directed content on YouTube and enabling targeted advertising without parental consent, media outlets reported. "Our order penalizes Disney's abuse of parents' trust, and, through a mandated video-review program, makes room for the future of protecting kids online - age assurance technology," FTC Chairman Andrew N. Ferguson said in a statement to CBS News."
"The 16-page complaint, filed in the U.S. District Court for the Central District of California, accused Disney Worldwide Services, Inc. and Disney Entertainment Operations LLC of failing to comply with the Children's Online Privacy Protection Act (COPPA) and the FTC Act. The government wants the court to stop Disney's actions, fine the company and provide other appropriate remedies. The complaint accused Disney of failing to properly mark thousands of videos as "Made for Kids" on YouTube. According to the FTC, Disney uploaded child-directed videos to channels labeled "Not Made for Kids," allowing YouTube to collect personal data from children and serve them targeted ads-practices that are prohibited under COPPA without verifiable parental consent."
Disney agreed to pay $10 million to resolve an FTC lawsuit alleging violations of federal children's privacy laws by improperly labeling child-directed videos on YouTube and enabling targeted advertising without parental consent. The complaint names Disney Worldwide Services, Inc. and Disney Entertainment Operations LLC and was filed in the U.S. District Court for the Central District of California. The complaint alleges thousands of videos were not marked as "Made for Kids," allowing YouTube to collect personal data from children and serve targeted ads prohibited under COPPA. The government seeks injunctive relief, civil penalties and other remedies. Disney said the settlement is limited to content distributed on YouTube and affirmed its commitment to compliance.
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