Disney Busted for Not Protecting Children’s Data Online

Photo from Thomas Kelley via Unsplash

By Kayla DeKraker

Disney will make things right after a concerning mistake.

The Walt Disney Company has agreed to pay a $10 million civil penalty to the U.S. Federal Trade Commission due to violating the Children’s Online Privacy Protection Act. The FTC works to protect consumers from fraud and neglectful practices.

The FTC claimed that Disney failed to properly label certain YouTube videos as “Made for Kids,” which resulted in the collection of personal data from children under 13 without parent consent.

“The complaint says the mislabeling allowed Disney, through YouTube, to collect personal data from children under 13 viewing child-directed videos and use that data for targeted advertising to children,” the compliant, filed by the Department of Justice, says. “Disney receives a portion of the revenues that YouTube generates from advertising placed with Disney videos and revenues from advertising that Disney sells directly.”

Related: ‘God is Bigger Than Disney’: Gina Carano Talks Wrongful Termination Lawsuit

FTC Chairman Andrew N. Ferguson said, “This case underscores the FTC’s commitment to enforcing COPPA, which was enacted by Congress to ensure that parents, not companies like Disney, make decisions about the collection and use of their children’s personal information online. Our order penalizes Disney’s abuse of parents’ trust, and, through a mandated video-review program, makes room for the future of protecting kids online — age assurance technology.”

In addition to the penalty, Disney now must fix its mistake by launching a program to review the videos “unless YouTube itself implements age-assurance technologies,” per the Wall Street Journal.

A spokesperson for Disney said, “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.”

This isn’t the first time Disney has made questionable choices regarding children’s wellbeing.

In 2023, the company underwent scrutiny for incorporating questionable themes into children’s shows and movies. Newsweek previously reported, “They ignored international uproar over the insertion of gay romance in ETERNALS, LIGHTYEAR and STRANGE WORLD, and proudly state their mission to advance a ‘not-so-secret gay agenda’ in children’s shows.”

Disney has seemed to take steps, though, to remedy this error.

Recently, the company made changes to become less “woke” and dropped some of its DEI programs, including its “Reimagine Tomorrow” program.

As with anything, it is so important that parents are mindful and alert to what their children are watching and participating in online. Although Disney seems be to correcting its mistakes, it is a sobering reminder that we cannot trust any company fully with our most vulnerable.

Read Next: Bob Iger Admits Disney Stumbled in Recent Years: ‘Lost Some Focus’

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