Disney to Pay $10M to Settle Allegations of Unlawful Kids’ Data Collection

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  • The FTC settled with Disney Worldwide Services, Inc. and Disney Entertainment Operations LLC (collectively, “Disney”) over allegations that Disney violated the Children’s Online Privacy Protection Rule (COPPA) by allowing collection of children’s data.
  • According to the complaint, Disney allegedly allowed the collection of personal data from children who watched kid-directed videos on YouTube without following COPPA’s requirements regarding parental notification and obtaining parental consent.
  • Under the terms of the settlement, Disney will pay a $10 million civil penalty, and establish and maintain a program to review whether videos posted to YouTube should be designated as “Made for Kids”—a classification that restricts data collection and limits features like personalized ads aimed at children—unless YouTube implements equivalent safeguards first, among other relief.
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