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Disney’s YouTube Error Resulted in Million-Dollar Fine: Unlabeled Children’s Videos Exposed Kids to Illegal Data Collection
Disney agreed to pay US$ 10 million, equivalent to R$ 54 million, following allegations related to the improper collection of children’s data in YouTube videos. The Federal Trade Commission (FTC) stated that the company failed to properly label around 300 pieces of content as “Made for Kids.”
This failure allowed the use of minors’ personal information in advertising practices, which is prohibited by U.S. law.
Affected Content
Among the videos were clips from highly successful animations such as Frozen, Toy Story, The Incredibles, and Coco.
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Without the proper label, children were exposed to practices banned by the Children’s Online Privacy Protection Act (COPPA).
This regulation states that data collection from children under the age of 13 can only occur with parental consent.
Therefore, the absence of the correct classification resulted in a direct violation of privacy rules.
FTC Statement
Andrew Ferguson, FTC chair, emphasized the seriousness of the case. “Our order penalizes Disney’s abuse of parents’ trust and, through a mandatory video review program, paves the way for the future of protecting children online — age verification technology,” he stated in a statement.
Additionally, the decision reinforces the responsibility of companies that produce content for children.
Disney’s Response
Since 2019, YouTube has required creators to indicate whether their content is aimed at children. Disney has committed to reviewing its digital practices and following all required regulations.
In a statement to CBS News, the company said: “Disney has a long tradition of adhering to the highest standards of compliance with children’s privacy laws, and we remain committed to investing in the necessary tools to continue leading in this space.”
With information from Metrópoles.
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