Disney reaches $10 million settlement with FTC over unlawful collection of children's data

Disney has agreed to a $10 million settlement with the Federal Trade Commission over the entertainment giant's unlawful collection of millions of children's personal data.

The agreement announced Tuesday came after the FTC filed a lawsuit against Disney for mining the personal data of children who viewed kid-directed YouTube videos without notifying parents or obtaining their consent, which the agency said violated the Children’s Online Privacy Protection Rule.

The government alleged that Disney had intentionally mislabeled YouTube content to collect personal data from children under 13, then used that data for targeted advertising to children. Disney receives some of the revenue YouTube generates from advertising placed with its videos and revenues from advertising that the company sells directly, according to the FTC.

FTC Chairman Andrew Ferguson says the case “underscores the FTC’s commitment to enforcing COPPA, which was enacted by Congress to ensure that parents, not companies like Disney, make decisions about the collection and use of their children’s personal information online.

“Our order penalizes Disney’s abuse of parents’ trust, and, through a mandated video-review program, makes room for the future of protecting kids online – age assurance technology.”