> At a Glance
> – Disney pays $10 million in civil penalties to settle COPPA violations
> – Allegations: mislabeling YouTube videos as not made for kids to target ads and collect data
> – DOJ order requires Disney to implement an ongoing compliance review on its YouTube channels
> – Why it matters: Parents must have control over their children’s data online, and the settlement sets a precedent for content creators
Disney has agreed to pay $10 million to settle allegations that it violated federal data-collection laws protecting children. A federal court entered a stipulated order against Disney Worldwide Services and Disney Entertainment Operations after the DOJ accused the company of mislabeling some of its YouTube videos as not made for kids. The mislabeling allegedly allowed Disney and partners to target ads to children and collect personal information without parental consent.
Disney did not immediately respond to a request for comment from News Of Philadelphia. A Disney spokesperson told News Of Philadelphia that the settlement does not involve Disney-owned platforms.
Disney spokesperson stated:
> Supporting the well-being and safety of kids and families is at the heart of what we do. 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.
Assistant Attorney General Brett A. Shumate said:
> The Justice Department is firmly devoted to ensuring parents have a say in how their children’s information is collected and used. The Department will take swift action to root out any unlawful infringement on parents’ rights to protect their children’s privacy.
What Happened
The DOJ filed a complaint in a California district court. It claimed Disney failed to properly label certain videos on YouTube that were actually aimed at children. The videos featured popular cartoon characters from titles such as The Incredibles, Coco, Frozen, and Tangled.
The lawsuit argues that this mislabeling violated the Children’s Online Privacy Protection Act (COPPA). COPPA prohibits website operators from knowingly collecting personal information from children under 13 unless they first obtain parental consent.
On Tuesday, the DOJ announced that a federal court had entered a stipulated order resolving the case. The order not only imposes a financial penalty but also bars Disney from violating COPPA on YouTube and mandates a continuous content-review program.
Settlement Details
Disney agreed to pay $10 million in civil penalties. The court order prohibits the company from violating COPPA on YouTube and requires the establishment of an ongoing content-review program to ensure compliance.
**Disney spokesperson stated:
> Supporting the well-being and safety of kids and families is at the heart of what we do. 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.
Assistant Attorney General Brett A. Shumate said:
> The Justice Department is firmly devoted to ensuring parents have a say in how their children’s information is collected and used. The Department will take swift action to root out any unlawful infringement on parents’ rights to protect their children’s privacy.
The settlement follows a $170 million FTC settlement in 2019 over similar COPPA violations. After that, YouTube required creators to designate whether videos they upload are made for kids or not made for kids. Videos labeled as made for kids have certain features disabled, including personalized advertising, personal information collection, and comments.
| Channel | Estimated Views (US) |
|---|---|
| Pixar | billions |
| Disney+ | billions |
| Disney Animation Studios | billions |
The case is among the first in which a content creator settled with the DOJ over COPPA violations, setting a precedent for other studios and creators.
Broader Impact
This settlement underscores the DOJ’s commitment to enforcing COPPA on third-party platforms.
It highlights the importance of accurate video labeling and parental consent for data collection.
Disney’s case may prompt other studios and creators to review their YouTube practices to avoid similar penalties.
Key Takeaways
- Disney will pay $10 million to settle COPPA violations related to YouTube videos.
- The DOJ order requires an ongoing compliance review program on Disney’s YouTube channels.
- This case sets a precedent for enforcing COPPA against content creators on third-party platforms.
Disney’s settlement demonstrates the growing scrutiny of data-collection practices for children online and signals that content creators must adhere to COPPA’s strict labeling and consent requirements.
