
The U.S. Federal Trade Commission (FTC) has settled with The Walt Disney Company, which has agreed to pay a US$10 million fine for allegedly illegally collecting data from child users.
In an announcement made on Sept. 2, the FTC stated that some videos provided by The Walt Disney Company to YouTube were not properly labeled as "for children," allowing the company to collect personal data from children under the age of 13 who watched related content on YouTube and use this data for targeted advertising.
According to relevant legal regulations, various websites, applications, and other online services targeting children under 13 must notify parents about the collection of personal information and obtain verifiable parental consent before gathering such data.
The FTC therefore filed a lawsuit against The Walt Disney Company, alleging that its actions violated the Children's Online Privacy Protection Act (COPPA).
On Sept. 2, Reuters quoted a spokesperson for The Walt Disney Company as saying that the settlement only applies to some of the content products the company provided to YouTube and does not involve content on Disney's own and operated platforms. According to the spokesperson, Disney will continue to uphold children's privacy protection regulations with the "highest standards."
YouTube and its parent company, Google, faced similar lawsuits in 2019, with YouTube accused of illegally collecting children's personal information without parental consent and using it for profit through targeted advertising. Under the settlement reached between the U.S. government, Google, and YouTube, Google and YouTube paid a total of US$170 million in fines to the FTC and the state of New York for violating the Children's Online Privacy Protection Act.
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