Disney to Pay $10 Million in FTC Lawsuit Over Illegal Collection of Children’s Data
Disney has agreed to a $10 million settlement with the U.S. Federal Trade Commission (FTC) following allegations that it unlawfully collected children’s personal data through mislabeled YouTube videos.
According to the FTC’s complaint, Disney Worldwide Services and Disney Entertainment Operations failed to properly tag certain videos, including clips from Frozen, Toy Story, Coco, and The Incredibles, as “made for kids,” exposing young viewers to features not suitable for their age and violating the Children’s Online Privacy Protection Rule (COPPA).
COPPA, enacted in 1998, requires websites and online services that target children under 13 to obtain parental consent before collecting personal data.
The FTC emphasized that Disney’s failure to comply undermined parental trust and exposed children to risks online. As part of the settlement, Disney will implement a video-review program to ensure future compliance and explore age assurance technologies to better protect young users.
A Disney spokesperson clarified that the settlement pertains only to content on YouTube and not to Disney-owned platforms. The company reaffirmed its commitment to upholding the highest standards in children’s privacy protection.
This case underscores Article 16 of the UN Convention on the Rights of the Child, which guarantees every child the right to privacy. It also reinforces Article 17, which affirms the child’s right to access appropriate information and protection from harmful content. In the digital age, these rights demand vigilant enforcement and responsible corporate behavior.
