Disney Settles FTC Claim for $10 Million Over Kids' Data Collection
By The Silicon Journals Staff —
The entertainment giant faces scrutiny for its handling of children's data on YouTube.
**Disney has agreed to a $10 million settlement with the FTC** over allegations that it misled viewers by incorrectly labeling cartoons on YouTube, which allowed the company to collect personal data from children. The Federal Trade Commission (FTC) claims that Disney failed to designate certain videos as 'Made for Kids,' a crucial label that would have restricted data collection under the Children’s Online Privacy Protection Act (COPPA). Instead, Disney left the default setting at the channel level, which resulted in kid-friendly content being marked as 'Not Made for Kids.' This mislabeling allowed Disney to serve targeted ads to children, circumventing YouTube's protections designed to safeguard young viewers' privacy. The settlement aims to address these violations and ensure compliance with privacy laws moving forward.
FTC Allegations Against Disney
The Federal Trade Commission (FTC) alleges that Disney misrepresented its content on YouTube by failing to label videos of popular children’s cartoons as 'Made for Kids.' This designation is crucial because it restricts the collection of personal information from viewers under 13, ensuring that children's data is protected. By not marking individual videos correctly, Disney circumvented YouTube's safeguards, allowing it to collect data and serve targeted ads to children. This practice is a direct violation of COPPA, which mandates that companies obtain parental consent before collecting personal information from minors.
YouTube's Previous Settlements
This isn't the first time YouTube has faced scrutiny over children's privacy. In 2019, the platform settled its own allegations regarding COPPA violations, which led to the implementation of a stricter labeling system for videos. The FTC's current complaint against Disney highlights that YouTube had already informed Disney in 2020 about incorrect labeling on over 300 videos. Despite this warning, Disney continued to upload content without proper designations, raising concerns about the company's commitment to protecting children's privacy and adhering to established guidelines.
Settlement Terms and Future Compliance
Under the terms of the settlement, Disney will pay a $10 million civil penalty and must obtain parental consent for collecting data from children under 13. Additionally, Disney is required to establish a new program to review and correctly label its YouTube videos as 'Made for Kids' or 'Not Made for Kids.' This program must be maintained for the next ten years unless YouTube develops its own age-determining system. This requirement emphasizes the importance of compliance with privacy laws and the need for companies to take proactive measures to protect children's data.
Impact on Children's Privacy
The implications of this settlement extend beyond Disney. It underscores the ongoing challenges in protecting children's privacy online, especially on platforms like YouTube that host a vast array of content. As companies navigate the complexities of COPPA, this case serves as a reminder of the importance of compliance and the potential consequences of negligence in labeling and data collection practices. The settlement aims to reinforce the need for stricter adherence to privacy regulations to safeguard young viewers from inappropriate data collection.
Industry Reactions and Future Outlook
The settlement has drawn mixed reactions from industry experts and child advocacy groups. While some view it as a necessary step towards accountability, others argue that more stringent regulations are needed to protect children's data across all digital platforms. As the digital landscape evolves, companies must remain vigilant in adhering to privacy laws to avoid similar pitfalls. The outcome of this case may influence future policies and practices regarding children's online privacy, prompting a broader discussion about the responsibilities of content creators and platforms.
Why it matters
- Highlights the importance of compliance with COPPA regulations.
- Raises awareness about children's data privacy issues on digital platforms.
- Sets a precedent for future enforcement actions against companies mislabeling content.
Key numbers
- $10 million - settlement amount paid by Disney.
Context
This settlement comes amid increasing scrutiny of how tech companies handle children's data, particularly on platforms like YouTube, which have faced multiple allegations of violating privacy laws.
0 Comments