The Walt Disney Company Agrees To $10 Million Settlement in Children’s Privacy Lawsuit
The Walt Disney Company has agreed to pay a $10 million fine to settle a lawsuit brought by the Federal Trade Commission (FTC) over videos it uploaded to YouTube.
According to the FTC complaint, Disney failed to designate certain YouTube videos it uploaded as made for children. This allowed the videos to have targeted advertising attached to them.
The uploads in question were largely “storytime” videos uploaded during the COVID-19 pandemic, which featured celebrities reading stories to kids.
Walt Disney Company
The government watchdog argued that by failing to properly label the videos, Disney violated the Children’s Online Privacy Protection Act, which requires content providers to properly label children’s content and request parental consent before attaching advertising to media.
Disney Blamed a “Clerical Error”
In agreeing to the settlement, Disney admitted that a clerical error led to the videos being mislabeled. They did, however, make it clear that the content in question was not on a Disney platform.
Photo: Disney
“Supporting the well-being and safety of kids and families is at the heart of what we do,” a Disney spokesperson said. “This settlement does not involve Disney-owned and -operated digital platforms, but rather is limited to the distribution of some of our content on YouTube’s platform.”
More Safeguards Will Be Put in Place
According to Axios, Disney has also agreed to create an “Audience Designation” program to formally review videos before they are uploaded.
Photo: Disney
“Disney has a long tradition of embracing the highest standards of compliance with children’s privacy laws. We remain committed to investing in the tools needed to continue being a leader in this space,” the company added.
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