What just happened? The Federal Trade Commission has reached a $10 million settlement with Disney over allegations that the company failed to adequately protect children's online privacy by mislabeling video content on YouTube. Under the agreement, Disney must implement a review system to ensure that videos posted on YouTube are correctly designated when they are directed at children.
In a complaint filed Tuesday, the FTC alleged that two Disney affiliates – Disney Worldwide Services and Disney Entertainment Operations – violated the Children's Online Privacy Protection Rule by failing to flag certain YouTube videos as "made for kids." According to the agency, these lapses exposed children under 13 to features on the platform that were not age-appropriate and enabled what it described as the "unlawful collection" of personal data.
The flagged videos featured content from well-known Disney properties, including animated films such as Coco, Frozen, and Toy Story, as well as music from The Incredibles, the FTC said.
FTC Chairman Andrew N. Ferguson said the settlement aims not only to penalize Disney for breaching parents' trust but also to ensure safeguards that prevent similar violations in the future. According to the agency, the agreement requires Disney to implement a mandated video-review program and adopt age-assurance technology as part of broader efforts to strengthen protections for children online.
COPPA, enacted by Congress in 1998, requires websites and online services directed at children under 13 to clearly disclose data collection practices and obtain verifiable parental consent before collecting any personal information.
Disney emphasized that the settlement does not involve its own digital platforms but applies specifically to content distributed through YouTube. "Disney has a long tradition of embracing the highest standards of compliance with children's privacy laws, and we remain committed to investing in the tools needed to continue being a leader in this space," a company spokesperson told CBS News.
YouTube requires creators to label videos as "made for kids" if they are primarily directed at children or clearly intended for a child audience. The Google-owned platform warns that failure to apply the label can lead to legal consequences, including liability under COPPA.
This labeling requirement dates back to a 2019 settlement between the FTC and YouTube over similar violations. Under that agreement, uploaders became responsible for designating whether their content targets children.