The complaint highlights the importance of proper video labeling under COPPA, which requires parental consent for data collection from children under 13.

This development highlights the need for companies to accurately label and manage children’s content to avoid legal and financial penalties.

The FTC has reached a settlement with Disney over violations of the Children’s Online Privacy Protection Act (COPPA), specifically related to improperly labeling videos as 'Made for Kids' on YouTube, which led to targeted advertising and data collection from children under 13 without parental consent.

Disney will pay a $10 million civil penalty and is required to review and properly designate its YouTube videos to ensure compliance with children's privacy laws.

Despite efforts to correct mislabeling after being notified in June 2020, Disney continued to categorize videos based on channel defaults rather than individual video designations for years.

This case is part of a broader pattern of major tech and media companies, including Google, Epic Games, TikTok, Microsoft, Amazon, and Instagram, paying fines for COPPA violations.

The settlement underscores ongoing regulatory scrutiny of digital platforms regarding children’s online privacy, advertising practices, and the need for transparency.

It also aims to prevent further data collection on child-directed videos and encourages the adoption of technological solutions like age verification systems.

This is the first known instance where a third-party YouTube content creator settled with the FTC over children’s privacy concerns since the 2019 settlement involving YouTube and Google.

The FTC emphasizes its commitment to enforcing COPPA and has called for the implementation of age verification technologies on YouTube to better protect children online.

Disney clarified that the violations only involved content distributed on YouTube, not its owned platforms, and reaffirmed its commitment to children's privacy and safety.

The case reflects the broader issue of widespread surveillance and data monetization by social media and streaming companies, earning billions from children’s data.

The case is part of a larger trend of companies like Google and Epic Games paying significant fines for COPPA violations, with recent settlements including Google’s $30 million and Epic Games’ $275 million.