Disney agrees to FTC fine over YouTube children's privacy

Disney has agreed to pay a $10 million fine following an investigation by the US Federal Trade Commission (FTC) into labeling practices on YouTube that affected content aimed at minors.

The regulator maintains that some of the material distributed by the company was not marked as “made for children”, which would have allowed the collection of data from users under 13 years of age and the activation of functions such as personalized ads on the platform YouTube, potentially violating COPPA law.

The sanction and the reasons

According to the FTC, the problem lay in a incorrect labeling of dozens of videos uploaded by Disney to YouTubeBecause it wasn't classified as "for kids," that content was subject to data collection and behavioral advertising, something COPPA prohibits without prior parental consent.

A senior official at the regulator, Andrew N. Ferguson, stressed that the order aims to correct what considered an abuse of the families' trust and promote technical solutions to age guarantee to strengthen the protection of minors on the Internet.

The case was brought by the Justice Department in a federal court in California, Framing the accusations within the obligation of content providers to accurately identify the child audience and activate the corresponding safeguards.

Obligations and changes that Disney must implement

In addition to payment, Disney must implement a review program to assess video by video whether the content is directed at minors and label it accordingly. The obligation will extend for 10 years, unless YouTube deploys a reliable age verification system that makes such a review unnecessary.

The measure is part of the COPPA framework and YouTube policies in force since 2019, when Google agreed 170 million for a similar case. Since then, the “Made for Kids” seal disables personalized ads, comments and other features, and prevents the data collection children's.

The FTC notes that YouTube had already warned Disney in 2020 about more than 300 misclassified videos.. Among the affected contents are franchises such as Frozen, Toy Story, The Incredibles or Coco, and channels like Disney Junior or Pixar Cars, where the adjustment was made automatically, although the problem would have persisted in other shipments.

In its public response, Disney stated that the safety of minors is a priority and that the agreement is limited to distribution on YouTube, without affecting their own platformsThe company assured that it will continue to invest in compliance tools and internal processes to maintain "the highest standards" in children's privacy.

The file sets a relevant precedent: It is the FTC's first settlement against a YouTube content provider since 2019., and reinforces the idea that both platforms and creators must share responsibilities in the digital protection of children. In this same area, other companies have faced heavy penalties for violations related to minors' data.

With a focus on digital protection, the FTC's decision addresses how children's channels and videos on YouTube should be configured to prevent improper collections and targeted advertising to minors. The regulator's message is clear: Even brands with a strong family presence are required to scrupulously comply with privacy rules..