Disney Just Settled a Major Privacy Lawsuit for $10 Million
In a significant move, Disney has agreed to pay $10 million to settle a major privacy lawsuit brought by the Federal Trade Commission (FTC). The case centered on allegations that Disney violated federal children’s privacy laws by mislabeling videos uploaded to YouTube during the pandemic.
The lawsuit accused Disney of failing to properly classify hundreds of its videos, including clips and music from popular movies like *Frozen*, *Coco*, and *Toy Story*, as content “made for kids.” This mislabeling exposed children under 13 to targeted advertising and allowed their personal data to be collected without parental consent.
The issue violated the Children’s Online Privacy Protection Act (COPPA), which requires companies to notify parents about data collection and obtain consent before tracking minors under 13. Disney’s error enabled advertisers and YouTube to treat kid-focused content as general audience material, leading to unlawful data collection and inappropriate ads.
According to the FTC, Disney uploaded videos to more than 1,250 YouTube channels since 2020 but failed to accurately label many as children’s content. This misclassification allowed YouTube’s algorithms to collect viewer data without proper protections, affecting many young users.
The settlement focuses solely on Disney’s YouTube content, not its own streaming platforms. As part of the agreement, Disney will implement a new Audience Designation Program to ensure proper video classification and adopt age-assurance technology to better safeguard children’s content online.
This case marks the first time since the FTC’s 2019 settlement with YouTube-Google that a third-party content provider, not just the platform owner, has been held liable for children’s privacy violations. Experts view this as a warning to media companies and creators that they too can face consequences for failing to protect children’s privacy on third-party platforms.
The FTC criticized Disney for “abusing parents’ trust” and emphasized that the settlement aims to set a precedent for stricter handling of children’s data. Disney acknowledged the administrative error and pledged to improve compliance moving forward.
Disney Just Settled a Major Privacy Lawsuit for $10 Million
In a significant move, Disney has agreed to pay $10 million to settle a major privacy lawsuit brought by the Federal Trade Commission (FTC). The case centered on allegations that Disney violated federal children’s privacy laws by mislabeling videos uploaded to YouTube during the pandemic.
The lawsuit accused Disney of failing to properly classify hundreds of its videos, including clips and music from popular movies like *Frozen*, *Coco*, and *Toy Story*, as content “made for kids.” This mislabeling exposed children under 13 to targeted advertising and allowed their personal data to be collected without parental consent.
The issue violated the Children’s Online Privacy Protection Act (COPPA), which requires companies to notify parents about data collection and obtain consent before tracking minors under 13. Disney’s error enabled advertisers and YouTube to treat kid-focused content as general audience material, leading to unlawful data collection and inappropriate ads.
According to the FTC, Disney uploaded videos to more than 1,250 YouTube channels since 2020 but failed to accurately label many as children’s content. This misclassification allowed YouTube’s algorithms to collect viewer data without proper protections, affecting many young users.
The settlement focuses solely on Disney’s YouTube content, not its own streaming platforms. As part of the agreement, Disney will implement a new Audience Designation Program to ensure proper video classification and adopt age-assurance technology to better safeguard children’s content online.
This case marks the first time since the FTC’s 2019 settlement with YouTube-Google that a third-party content provider, not just the platform owner, has been held liable for children’s privacy violations. Experts view this as a warning to media companies and creators that they too can face consequences for failing to protect children’s privacy on third-party platforms.
The FTC criticized Disney for “abusing parents’ trust” and emphasized that the settlement aims to set a precedent for stricter handling of children’s data. Disney acknowledged the administrative error and pledged to improve compliance moving forward.
Conclusion
Disney’s $10 million settlement with the FTC over children’s privacy violations marks a significant milestone in the enforcement of COPPA regulations. The case highlights the importance of proper content labeling and data protection, especially when it comes to children under 13. By implementing a new Audience Designation Program and age-assurance technology, Disney aims to prevent future violations and rebuild trust with parents. This settlement also serves as a cautionary tale for media companies and content creators, emphasizing their responsibility to comply with privacy laws, even on third-party platforms like YouTube.
As digital platforms continue to evolve, companies must prioritize transparency and accountability in data collection practices. Parents, too, should remain vigilant about their children’s online activities and advocate for stronger privacy protections. This case underscores the shared responsibility of corporations and regulators in safeguarding children’s privacy in the digital age.
Frequently Asked Questions
Why did Disney face a privacy lawsuit?
Disney faced a privacy lawsuit for mislabeling children’s content on YouTube, which led to the collection of personal data from minors without parental consent, violating COPPA.
What is COPPA, and how does it apply to this case?
COPPA (Children’s Online Privacy Protection Act) requires companies to notify parents and obtain consent before collecting data from children under 13. Disney violated COPPA by failing to properly classify and protect its children’s content on YouTube.
What measures is Disney taking to prevent future violations?
Disney will implement a new Audience Designation Program and adopt age-assurance technology to ensure proper classification of children’s content and better safeguard young users online.
What does this settlement mean for other companies?
This case sets a precedent, signaling that third-party content providers, not just platform owners, can be held liable for children’s privacy violations. It serves as a warning for media companies and creators to comply with COPPA regulations.