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Disney to Pay $10 Million to Settle FTC Case Over YouTube Kids-Labeling Failures

Regulators say mislabeling child-directed videos let YouTube collect kids’ data for targeted ads in violation of COPPA.

Overview

  • A DOJ-filed FTC complaint alleged Disney failed to mark certain YouTube uploads as “Made for Kids,” enabling collection of personal information from viewers under 13.
  • YouTube told Disney in June 2020 it had reclassified more than 300 Disney videos as child-directed, yet the company continued relying on channel-level defaults rather than reviewing individual videos.
  • Under the settlement, Disney will establish an audience and video-review program to ensure proper designations on YouTube, with the obligation potentially shifting if YouTube adopts effective age‑assurance technology.
  • The complaint says mislabeling allowed targeted advertising on child-directed videos and that Disney shared in YouTube ad revenue and also sold ads directly.
  • Disney said the agreement covers some content distributed on YouTube and does not involve Disney-owned platforms, as the FTC highlights continued COPPA enforcement following YouTube’s 2019 case.