• Disney will pay $10 million to settle FTC allegations regarding children's data collection.
• The FTC accused Disney of violating the Children's Online Privacy Protection Rule (COPPA).
• The settlement addresses issues related to mislabeling videos on YouTube intended for children.

Disney has agreed to pay $10 million to settle allegations by the Federal Trade Commission (FTC) that it unlawfully allowed personal data to be collected from children viewing kid-directed videos on YouTube. The FTC claimed Disney failed to properly label these videos as "made for kids," resulting in the collection of personal data without obtaining necessary parental consent, violating the Children's Online Privacy Protection Rule (COPPA), which is designed to protect the privacy of children under 13, according to CBS News, Reuters, and The Hill.

In its complaint, the FTC asserted that Disney permitted the collection and use of children’s data for targeted advertisements, leveraging the mislabeling of video content. This accusation included content from popular Disney movies like "Frozen" and "Toy Story." FTC Chairman Andrew Ferguson emphasized that the settlement underscores the commitment to enforce COPPA, ensuring parents retain control over their children's personal information, according to Reuters and The Hill.

Disney, while confirming the settlement, clarified that it does not involve the company’s own digital platforms but pertains to content on YouTube. The company also announced plans to implement an audience designation program to ensure proper labeling of its videos as suitable for children when appropriate, reinforcing its compliance with children's privacy laws, according to CBS News and Reuters.