Disney Agrees to $10 Million Settlement Over Children’s Data Collection on YouTube: What You Need to Know

Disney has reached a settlement to pay a $10 million fine for mishandling children’s data on YouTube. The Federal Trade Commission (FTC) found that Disney didn’t mark certain videos as “Made for Kids,” which is crucial for following laws designed to protect children’s privacy online.

The FTC insists that this ruling addresses Disney’s oversight and emphasizes the need for better child protection online, particularly with new age verification technologies. FTC Chairman Andrew Ferguson stated, “Our order penalizes Disney’s abuse of parents’ trust.”

Disney, on its part, has reiterated its commitment to child safety. They emphasized that the settlement involves content distributed on YouTube, not their own platforms, and stressed their dedication to complying with child privacy laws. They stated, “Supporting the well-being of kids and families is at the heart of what we do.”

This situation isn’t unique to Disney. Back in 2019, YouTube itself faced a hefty $170 million fine for similar reasons. Following that, YouTube started requiring creators to label whether their videos were intended for children.

The FTC complaint revealed that YouTube alerted Disney in June 2020 about around 300 videos that lacked this important designation. Some of these included popular titles like “The Incredibles” and “Frozen.” Disney typically marked videos at the channel level, but many child-friendly videos ended up in channels labeled “Not Made for Kids.” This mistake meant that YouTube wrongly collected data on young viewers.

Videos that are labeled “Made for Kids” also miss out on features like comments and advertisements, making it imperative that creators accurately identify their content. According to the settlement, Disney must implement an Audience Designation Program to classify its videos correctly moving forward. This initiative aims to ease the burden on creators and better protect children’s privacy.

This issue speaks volumes about the tech industry’s ongoing struggle with child safety and data privacy. Studies show that children are becoming more tech-savvy at younger ages. According to the American Academy of Pediatrics, about 98% of homes in the U.S. have at least one device. As children engage more online, the need for stringent regulations and responsible content management becomes even more critical.

For companies like Disney, adapting to these regulations is crucial not only for compliance but also for maintaining the trust of parents and their young audiences. As technology evolves, so too must the rules that govern it. This ongoing conversation highlights the importance of child safety in an increasingly digital world.

For further insights, you can check the FTC’s complaint and details about the settlement agreement.

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Disney,Federal Trade Commission,YouTube